2nd FHA Loan | House Hacking

[Emmanuel Barrientos]

I was wondering if there are any limitations to getting a 2nd FHA loan as far as what value the 2nd house is compared to the first one. In other words whether it is considered an upgrade or downgrade. I am in the process of learning and plan to use house hacking as my investing strategy for the first few properties. I know that I would have to refinance out of the first FHA loan in order to qualify for another FHA because you can't have two at a time. Let's say that my first house hack using FHA loan was bought for 220k and then once it is refinanced into conventional, I try for another FHA but this time it is a 175K property. Would this raise any flags? Thank you for any feedback!