Refinance Scenario Basics

[Trevor Thompson]

Just running through scenarios in my head to make sure I'm getting the basics hammered into my head. I'm looking for what I'm missing beyond the cookie cutter scenario I put below.

Scenario: Say I find a house listed at $200,000. I have a partner who will be handling the down payment up to $10,000 which in this case is 5%. The mortgage that will be pulled will be an Owner Occupied FHA because my idea will be to house hack this beautiful 4 bedroom with 3 other roommates. After six months of "seasoning" and minor cosmetics, the house is now magically appraised at $220,000 (because we got the house on minor discount and made money on the original purchase). Now I'm looking to refinance the loan at let's say $211,000 because my partner would like a 10% ROI which would equate to $11,000 in order to payoff my partner's investment. After paying off my partner, I now have an outstanding mortgage of $211,000 (This doesn't include the monthly payments made during the six months for simplicity sake), along with $9,000 in equity.

I appreciate all feedback and critiquing any outliers.

-Trevor