Recoup Rehab Costs with Delayed Financing?

[Neal O.]

I have heard this strategy mentioned a few times in the past where one can achieve a greater amount of delayed financing by including your rehab costs on the HUD / closing disclosures. How would I actually do this in practice? Do I just come up with whatever amount I anticipate spending on rehab and ask the agent or title co to include that amount on the document at closing? Is it true that some amount of insurance cost can also be added?