Question about FHA Refinancing

[Jonathan Pliszka]

I purchased a multi-family home at the end of 2011 using a FHA Mortgage. I paid $165,000 at the time and put 3.5% down and am currently living in one of the units. After some improvements that I’ve made and general market appreciation, I’m confident that I can now appraise over $200,000, which would put me over a 20% equity stake. I currently owe $156,000. My thought is to refinance my current FHA Loan to an investor loan, which will come with a higher rate, but negate my PMI payment. My hope is that by doing this, I’m again eligible to again purchase with a FHA Loan and would only have to put down 3.5% when I buy my next property. I’m OK with moving to this property per FHA guidelines. What am I missing here? Any help you can provide is greatly appreciated. Cheers!