Refi out of my FHA 4 unit property?

[Jeff White]

I own a 4 unit property in Denver that I financed with FHA financing about 2 years ago for 630K with a 3.75% interest rate back in Aug 2017. My mortgage payment is $3,481.77 with about $400 of that going to MIP, and I would like to refi out of it to eliminate my MIP and potentially use it again for a future multifamily property.

I lived there one year and then moved out, but I have improved 3/4 units, and I'm looking to potentially refi out of it into a conventional loan to free up my FHA loan to use again down the line.

As of today, I owe 576K, would it be worthwhile for me to look into a non-cash out refinance into a conventional loan?  I think it is worth between 725-775k today. 

Few questions:

1) Do I need to have 25% equity to get rid of my FHA MIP completely and into a investment property conventional loan?

2) I own this property, another single family house investment property, and my current primary residence, how much in reserves will I need? 

[Chris Mason]

1) Yes. If needed, you can come in with funds during a refinance. 

2) 6 months PITI (new payment) on subject, 2% of the balance of the other rental, none on the primary.

Read some of the other threads on here for strategies to maximize refi appraised value, to minimize the chances of a low appraisal, or at least mitigate it.