FHA Loan + Cashout Refinance

[Jason Lin]

Hi Biggerpockets member,

I had a quick question relating to the FHA loan and cash out refinance...

Lets say I wanted to purchase a duplex using the FHA loan. From my understanding you cannot get a FHA loan if the property is distressed ? What if the property was just outdated (kitchen and bathroom) and I was able to rehab it and get it up to date thus forcing equity. Would I be able to do a cash out refinance from that property? Do I need to wait a seasoning period for it? Do I need to hit a 20% equity before I can refinance?