Cashout Refinance our of FHA or HELOC

[Johnny Moua]

Hi, I’m just about ready to get my feet wet, but trying to make the best of my situation.

So here’s my scenario, 

Currently, my primary residence is under an FHA loan for 115k, haven't gotten an actual appraisal yet but I'm estimating a 160k appraisal with the updates and hot market, last year it appraised at 141k when I bought it foreclosed for 120k.

I realized it's not as much equity as most people trying to do the same, but I'm gonna try. I was looking to get a HELOC for the equity to use as a down payment on a live-in duplex or 4plex, the lowest % down of conventional loans I was able to muster up was a 15% down conventional loan from Wells Fargo. So I either go that route, or Cashout Refinance out of my FHA loan on my primary residence, and use that for part of my down payment, plus I would be able to use the 3.5% down FHA loan again to buy another live-in duplex or 4plex.

I was wondering what insight you pros have and what your suggestions would be and or finding any underlying issues on my plans to purchase my first investment. Any ideas or input would be much appreciated.