Can you BRRRR with financing, or just hard money/cash?

[Josiah Sia]

Starting out with REI and the BRRRR process seems great. For someone with minimal connections and little capital ($50k) it will be difficult to do a complete BRRRR project. Almost everything I've read or listened to in the BP podcasts and forums showcase doing the BRRRR strategy with hard money loans or cash.

Is it possible to do the BRRRR method with financing to start the process off (buy), then refinancing after the seasoning period? Say doing a conventional 5% DP loan to purchase a property, then doing a refinance after the appraisal after the rehab? Is there any major negative or downsides to doing it this way? Or am I missing something and this wouldn't really work?