BRRR on Personal Residence (BRR?)

[Lance Middleton]

Hello BP Community.

This maybe a stupid question, but I am curious if there is a way to utilize the rehab and refinance method on a personal residence. Say I bought a house using all cash and while living there I slowly fixed the place. The ultimate goal of eventually renting it out after a year or so, but can I refinance the property and pull the cash out while I am living there? 

A hypothetical example:

I buy for $30k cash. Put $10k repairs into it while living there(a year or so) and have it appraised at $60k. Refinance at 70% LTV pulling out $42k. After that I rent it out at $700/month. Use the $42k cash to put into next home and perhaps repeat this process. Similar to a live-in flip process but renting it out afterwards instead.

Any input is appreciated! 

Lance