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.

This info is based on DSCR and Hard money loans, not FHA, VA, or conventional.

My wife and I financed it out of our pockets putting 25% down on a conventional loan.

I used a conventional loan to secure the property.

Very familiar w the city as I was born and raised here.Going 20% down conventional w plans to pay it off ASAP as I make over 100k per year after taxes and live well below my means.I hope to rent it out and cash flow as soon as I pay it off.Today during the blue tape walkthrough I identified an issue with the front door.

For funding, I have a couple options, use my heloc (prime +0.5%) for the down payment and then conventional loan for the rest. 

We would certainly reach a larger audience and probably get a better price, but that would have to be with someone dealing with conventional financing most likely.

(Sometines using a conventional loan) Short-term pain for long-term gain2.

In some markets, theres a trend of converting student housing back to conventional multi-family to meet housing demand.

. - If you are NOT buying the property as your primary residence (in this case, it sounds like it will be an out of state rental), you are looking at putting 20% - 25% down if you are going to use a conventional mortgage.