I am attempting to purchase my first rental property. I'm looking to get a 3-4 unit multifamily home and using an FHA loan and owner-occupying it for a year. My question is once the year is over, assuming that I purchased the property under market with minimal repairs and I am able to pull out the equity. Would it be possible for me to do a cash out refinance through a conventional loan so that I can take the equity and use it as a down payment to purchase another rental property (BRRRR method)? I know there's an FHA Cash Out refinance but my goal is to not have to owner occupy another property. I'm only doing it initially to get the cost advantages of an FHA loan.
Tajae - that plan should be fine ...keep in mind that most convention " cash out " owner occupied guidelines allow a 75% ( possibly 80% ) loan to value to work with