Refinancing To Get Out of FHA

[Austin Remus]

Hey BP Im looking into getting a house by the end of this year preferably a multi family.

Im looking into using one of the FHA loans to buy my first property and house hack it for the first year. I know in order to refinance into a conventional home loan you must have 20% equity in the home. If I were to rehab the home and it appraised for more than 20% of the purchase price, would this mean I then would have the 20% equity necessary to refinance into a conventional loan? I know this might be a simple question, but I would just like to clarify. Any help or extra information would be greatly appreciated!