Refinancing an FHA loan: MIP removed + Cash-out Benefit?

[Nathan Yee]

Hello BP Community, I'm considering the loan type I want to use for the purchase of my first property. The FHA 203K looks to be the front runner. With a future buy and hold exit strategy in mind, can you cash-out refinance out of an FHA 203K loan to a conventional one - once 80% Loan-to Value (LTV) is reached, thereby extracting cash out (for the next investment property) while dropping the Mortgage Premium Insurance (MIP). Once you cash-out refinance from an FHA 203K to a conventional loan, what typically happens to your mortgage rate? Does it go up? If I cash out refinance once I have an 80% LTV, wouldn't my LTV go back up after the cash-out?

Any help or advise is greatly appreciated.