Cash out refinance FHA?

[Angel Garibay]

So there are a couple deals in my area that I am currently looking at. I am eligible for an FHA loan and I was wondering if I could use an FHA to purchase a dated house (that would only need cosmetic rehab), rehab the house and then cash out refinance to conventional loan terms? Or refinance to conventional loan terms and then pull out a HELOC? Basically I want to get out of paying that monthly PMI as soon as possible (that is why I don't want to do a 203k loan) and only put 3.5% down on a new primary.

One of the houses I am looking at the purchase price is 400 and after about 60 in renovations it would be worth around 600-620.