Buying under FHA 203k, ultimately flip to conventional... how does this work?

[Colin Alsheimer]

Hey there - looking into my first investment - a MF property in the Boston area. We're planning on getting this with 3.5% down under an FHA 203k loan, and putting 50k-100k into repair and upgrade costs.

We know that the ideal scenario is that we get this property, do the repairs, and then get it re-appraised and somehow at the appraisal process we're able to refinance into a conventional loan product and do away with the PMI payments.

My question is - how exactly do the numbers work on this flow? Hypothetically, we're looking at a 740k loan package which includes closing costs and 100k in repair costs. 26k would be the down payment.