Questions before my first deal

[Seangy Sum]

Hello!

I'm speaking with lenders about being pre-approved before I go search for properties and RE agents, so far the lender and I spoke about FHA loans and USDA loans. Both loans are owner-occupied loans. My father said he'll move in with me and help with the mortgage for the year it has to be my primary residence; sort of house hacking I guess.

I want to acquire a property that will give me instant equity, a property that will require some renovations. My brother will help with the handy work during the period of the property being my primary residence. My overall goal is to buy and hold and use this property as a rental.

My question is by doing some renovations I'm assuming it will force appreciation and if so, what is typical timeframe from when I purchase the property to be eligible to refinance, assuming I'll qualify (though, I don't see why I wouldn't unless I haven't made my mortgage payments on time.) 

If the properties appreciates and I am able to refinance and stretch the term, the bank will usually lower the interest rate and give 70% of the homes value? If that is true, would it be a good idea to use that money to purchase another property? Is this a good idea? Assuming the numbers match.

Any advice, suggestions or tips is MUCH appreciated.

Thanks!

[Seangy Sum]

Originally posted by @James Wise:

Most banks are looking for 6-12 months after the initial purchase before they are willing to do a new appraisal.

 Thank you!