FHA 203k Program on Duplex then refi

[Alexander Zurn]

I have a property almost under contract (duplex, Newport county, Rhode Island) and I want to be ahead of the game. It needs immediate work and I am considering a 203k loan on the property. Numbers aside (because they would have to work in order for me to go through with it), I am looking for pros/cons of this idea.

My thought is that I can get the property at a lower price, put the work in while financing the repairs, then once it is complete and I have lived in it for a year, rent it out and possibly refinance to get cash out to put towards my next investment.

Is this possible if I am financing the repairs in the loan?