Finance snag on my first deal

[JD Monroe]

Background-

Single Family HUD Home listed at $70,000

1457sqft

ARV $104,000

Repairs: 15k-20k

My bid was accepted for $62,000

ARV $104,000(Low)

My intent is to make the repairs out of pocket. This will be primary residences until I get orders, and then I would cash out refinance and rent it out.

I was pre-approved for a 30 year FHA loan 3.5% down @ 4% interest.

Today the loan officer told me she didn't think the home would pass FHA standards and refered me to another bank. She said after 6 months and once the repairs were made I could refinance with her. The new financing is 6 months interest only @ 5.5%

Question 1: What are the risks associated with this plan?

Question 2: Is there a better way to finance it?

Question 3: If in 6 months this is no longer my primary residence (due to Military PCS) will I still be able to refinance?

My numbers:	Month	Year
Gross Rent	950	11400
Property Management	134.615	1615.38
Insurance	80	960
Property tax	91.92	1103.04
Vacancy	76	912
Maintenance	63	756
Total Expenses	445.535	5346.42
Net Operating Income	504.465	6053.58

Thanks for the help!

JD