Refinance for second home

[Sean Gleason]

Is it possible and legal for me to refinance my current residence, which is financed with FHA loan , to pull cash out and use as down payment on my next home? I have been paying extra on my house since I lived here chipping away at the principal, I would like to upgrade and keep my current house as a rental property. Cash pulled out would be for a down payment on my next residence, I would have two mortgages but one would be paid for by renter hopefully. I currently live in a small house with a very good location that I believe would make a good rental but I am starting family and need more room for myself and would also like to get into real estate investing so I don't want to sell my house in order to buy my next house. I'm asking for the future also, something like 3 to 5 years down the road, just trying to learn options so I can plan ahead accordingly.