Sub2 refinance concerns

[Nick Frankus]

I am looking at my first Sub2 deal and have a question. As long as the title transfers to me at closing and I buy subject to the existing financing, is there any reason a lender would have a problem refinancing the house and paying off the underlying loans which are in the seller's name?

My plan is to purchase the house subject to the existing financing (I take title and pay sellers loan payments), rehab the house with cash, then refinance and potentially cash out my rehab money if the numbers are good enough. What are the problems I should be aware of in this case?