Or to have enough equity to refinance out of an FHA mortgage into conforming with no PMI?

Will try and do a cash out refinance so I can purchase another property in 2024.

And, while the investor is at it, they may as well do a cash out refinance, or at least they want to know what those numbers look like.Here is what that financing might look like, along with pros/cons.From left to right: No prepayment penalty, 3 year prepayment penalty, no prepayment penalty. 

Options include:Renovation Loan (FHA 203(k) or Fannie Mae HomeStyle) to cover both home purchase and ADU construction.HELOC or Cash-Out Refinance if you have equity in your home.Construction Loan specifically for building the ADU.This post does not create a CPA-Client relationship.

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.

Either way you are going to pay for it, it just matters which pocket-  as you could also refinance your primary residence but again that will skyrocket that loan.The only way to make it go away would be to sell that rental.

Remember, C/D located properties generally appraise once improved for significantly more than they will actually sell in an arms length transaction so you can go to many C/D neighborhoods, successfully complete the BRRRR method but deal with  all of the operational difficulties of the asset class and then fail to achieve a sale figure remotely close to the favorable appraisal  that allowed for the proceeds to be returned through the refinance. 

I have more than enough net worth and global cashflow to cover a gap, however because most of my net worth is in collateralized real estate, I cannot directly access by say cashout refinance. 

The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) can help scale faster.

I do not want to refinance since I have a 3.2% mortgage.