House hacking with FHA question

[Eric Charles]

Looking to get started in real estate investing with house hacking within the next year. I've been reading everything I can find and listening to the podcast, but I still have a question.

If I go FHA at 3.5% down to minimize out of pocket cost up front, how do I have the equity to refinance into a conventional in only a year or two? If I buy a distressed property and rehab it, then that defeats the purpose of going FHA to minimize up front cost? Am I missing something here?