Refinance on equity with foreclosure?

[John Kaspar]

Here's my current issue:

only make about 60k (assuming that would only qualify me for about 270k)

almost out of debt(maybe 5k)

essentially no money in the bank (spending it all on debt)

land around me is ridiculously expensive(MA)

(have a VA loan)

wanted to know if this concept would work

1a. Purchase a foreclosed home (with VA loan)

1b. Possibly do some quick work 

2. Refinance on equity  (only ask for 15-20k)

3. Use funds from equity to use as down payment on MF

4. Sell house 

5. Then BRRR on multi families.

Not sure if this can work, but with little amount that I would be approved for wont get me much in MA, CAN this plan work?  Just looking for insight/direction. 

Thanks in advance!