Refinance from Conventional loan to FHA or USDA?

[Kelvin J.]

Hi all. Couple of questions. 

Houses needing rehab (70K) in my area are being sold quickly to those with cash, people with loans tend to be losing out. I will have around 70k if I sell my primary residence (a condo) and wanted to take advantage of these high resale homes. My current income will only allow me to get a 15k line of credit on that equity due to low earnings last couple years so selling seems reasonable to get started.

Q1. Can I buy for cash and then later refinance as an owner/occupier to FHA or USDA to release capital (for investment property goals)?

Q2. Will I be less desirable as a buyer if i have most, but not all cash, and have to get a small conventional loan to cover a shortfall? (e.g. for a 90K property)

Thanks k