However there are non conventional lenders that will look at the performance of the property more than your personal financial picture.

So, I believe you should be able to do a cash-out refi with a conventional fannie/freddie loan meant for an owner occupant.

I have two financing options:Method #1 is a conventional 30 year mortgage @ 3.87% interest rate with 25% down on a MFH Method #2 is HELOC loan that I can get at 3.5% interest rate by borrowing up to $180K or 4.24% rate if I was to borrow $230kMy dilemma here is which method makes more sense in general ?

@David Franklin someone will give you money if you have the equity, talk to more people, look outside of conventional if you have to, talk to local banks, you will get that cash

Conventional or FHA.

The plan is to close on the next home around 1 year of primary residency at this current one to stay within the terms of my conventional loan and continue scaling from there.When I am not at my 9-5 or poorly managing/working my home projects, I try to find time for bouldering and snowboarding. 

Go conventional if you can qualify.

Or should I just use my cash and go conventional.

Conventional would not work based on PMI not being offered and needing 15% down.Thoughts?

Just use a Conventional loan and put 5% down for the next one.