Can you cash out refi if you currently have a HELOC?

[Jj Horst]

Hey all. I just got through evicting my tenant (stopped paying and wrecked the place. pretty nasty) in an owner occupied duplex and am taking out a HELOC to help pay for the rehab on the tenant side. I've done a lot of work on my side so I should have a decent amount of equity.

I can safely afford to pay off the HELOC over time, but I was wondering, if I force a bunch of appreciation with the rehab, is there anything holding me back from then trying to cash out refinancing the house to

A) pay back the HELOC (and save myself some interest)

B) Hopefully have a bit of cash left for myself so I can start saving for the next duplex down payment.

Seems too good to be true so I wondered if there is some rule barring it.

(Currently have FHA mortgage on the home)

Thanks so much for everyone's help here!