It's a second loan on top of the FHA product.You have to continuously reside in the property for 5 years for it to be forgiven.You won't be able to refinance the property with zero equity.

We currently have some equity in our home and want to pull it out to start investing in other real estate.

Well, this house has appreciated as well and we're now sitting like all others in SoCal in a 1974 Build 1,250sqft house on a 4,000sqft lot between a train track and river trail in an amazing zip code/school district that's valued at $700,000 of which about $360K is equity.

I do have about 48k in equity tied up in my primary home.

Purchase Price 175000 Currently Value   186000 Equity   45600     Mortgage, Insurance, Taxes   1165 HOA   120 Maintenance 10% 145 Vacancies 10% 145 Management 7% 100 Tenant Placement 8% 121 Total Costs   1796 Rent Price   1450 Equity   200     Monthly Cash Flow -346 Yearly Cash Flow -4150     Monthly Cash + Equity -146 Yearly Cash + Equity -1750Thanks for all comments in advance! 

During this threat I set up several LLCs to quickly move the properties into and was prepared to do equity stripping through another LLC.  

There is no equity!!!!!

If you get a $440,000.00 value as you project, you need to pay the balance down to $352,000.00 3) I would also ask the lender of the 2nd home you bought to just remove the MI, you will have to have it appraised, but it looks like you would have the 20% equity to allow them to remove the MI. 

At this stage of the market I want everything to be more than favorable to minimize risk.

@Roschelle McCoy It looks like this deal is a way to capture some decent equity.