1st property, but how to Re-Fi so small a mortgage

[Wouter Ceyssens]

Hi everyone. New guy here trying to get my start with first property. 

Looking at a Bank Owned auction of a 1000sqft 3bd/1.5bth locally that probably has an appraisal of $50-60K. This is comparable for the neighborhood. If (IF) I could get the house at $20-30K, 2% rule of $600/rent is very reasonable and since its a cash auction (and no mortgage), would easily cash flow probably $300/mo. Its "as-is" however and no interior access so I don't know what awaits inside. Its a 1996 Habitat built home tho and by property info had only 1 homeowner (who apparently defaulted) and was recently evicted (on recent drive by, saw the eviction contents on front lawn).  Roof and furnace may be nearing end of life... 

...but repairs aside-- assuming (and I know about that) that all other things were equal, here's the question: how do I get a refinance cash-out loan for only say $30K? A friend here on the forum told me typical lenders were unlikely to do that low a mortgage. Visio for example has a 75K minimum. I'd want to get my equity + appreciation out in order to do the next house. 

Does anyone here have experience with low value refinance mortgages? Does this house look promising, even if just for cash flow? Or would you say 'stay away'? If I can't get my cash out, I feel a little stuck as far as moving on. 

Thanks for all the advice. Feel free to point out gaping holes in my thought process here too. I want to learn!