You could just start off with doing a refi on the FHA property into a conventional loan since you already have plenty of equity, and I agree if you only do one thing, it should be refinancing the FHA.

@Jake HelmburgIf you're using a conventional loan, take note that there is language in the agreement that a person buying a primary residence single-family home with Fannie Mae must abide by the owner occupancy requirement and must agree to move into the home within 60 days of closing the loan, and to live there for at least a year.

There are less lenders willing to do HELOC on investment property and some require higher LTV than conventional financing. 

Have you explored the option of conventional lending?

Hi - I’m looking at a 3 unit property in Northeast PA that I would like to finance with a conventional MF mortgage.

However, the multi-family properties I have been viewing and the one I am trying to purchase would not pass an FHA inspection and out of necessity, switching to using a conventional loan.

Conventional 30 year loan, used a HELOC for the down payment.

I didn't know it was possible to refinance out of a hard money loan into a conventional loan.

If you're working with a HML who doesn't have a professional accounting system it can be very difficult to get documentation that looks legit to a conventional lender and it can be difficult to even get the documentation at all.

Mainly because you can use a 3.5% down payment instead of 15% for conventional.