FHA 203K loan > Refinance

[Tighe Dudeck]

Hey Everybody,

This is my first post here, but I've been a longtime follower of bigger pockets. I am currently looking at a duplex and acquiring it with a FHA 203k loan. It is a property that definitely needs a lot of work put into it. Here are some round numbers just to give everybody an idea. Its $70,000 to purchase, and needs $100,000 rehab. Putting 3.5% down. I want to use the BRRRR strategy for this purchase, but I am a little confused on the refinance aspect of it. I understand with an FHA loan you need to live in it for at least 1 year, so is it better off to refinance after a full year once you have two tenants paying rent. Does the worth of the house go down if you are refinancing it while you are living in one half of it (not paying)?

Basically what I am asking is if the rehab is done after say 4 months, can I refinance it immediately, and even though it is not bringing in the income it eventually will once I'm not living in it, it won't effect how much the house is going to be worth?

I hope I wasn't too confusing! Thanks in advance!

Tighe