FHA is good due to the low down payment but the up front MI is very expensive.... in addition, you have to add .8 to your rate which is going to be your monthly MI so it will eat into your monthly profits; you cannot drop the MI, you would have to refinance to get rid of it. make sure you properly calculate the payment with all escrows and re-run you numbers...

An option is to use a HML or PML until you have more rental income and can refinance with a bank.

I am a little confused as to when/if I should refinance my home.

That value could go up or down depending on the specific factors of your market.If you apply for a refinance or other loan using your property for collateral, the bank will most likely order a new appraisal and base the loan on the current appraised value.

My wife and I recently did a cash-out refinance of our current home.

Consider refinance prior to moving out.  

I can hold for 90 days and then would refinance to buy out my cash investor if kept as rental.

Right now his credit looks great, but we are doing a $20k rehab which went on my no interest for 18 month credit card and my line of credit until we refinance in May. 

If you choose to move on, you must refinance. 

This is  a deal will be bought in foreclosure fixed up and then rented for 3-5 years  before we sell.Can you please be a critic of my logic in buying all cash in a market where a refinance does not make sense. $2,500.00 MONTHLY INCOME$1,739.50 MONTHLY EXPENSES$760.50 MONTHLY CASH FLOW2.41% PRO FORMA CAP RATE$9,126.00  NOI$295,800.00 TOTAL CASH NEEDED3.09% CASH ON CASH ROI4.56% PURCHASE CAP RATEAfter Repair Value $379,000.00I will Sell the Property in year 3-5 years with a $92k-$139k in profit.