Should I use the equity in my house to invest in other properties

[Cesar Contreras]

Hello all,

Cesar here. I'm new to biggerpockets and looking for some expert advice. Your insights and experience is welcomed!

With that, here is a little about my situation. I recently purchased my first home which was a foreclosure. 

I purchased the foreclosure for $75,000 and put $30,000 into improvements for a total loan amount of $105,000 via an FHA 203k loan. According to the appraiser, the ARV will be between $125,000 and $130,000. My loan officer suggest I refinance after 6 months to get closer to 80% LTV and so that I can ditched the mortgage insurance.

My contractor has offered me an opportunity to partner with him on flipping houses however I don't necessarily have the capital. Since I will have $15,000-$20,000 equity in my house, should I use that to invest in other properties? Good or bad? Crazy, wacky? 

Thank you in advance.

Cesar