Need advice: Should I get a private and mortgage loan?

[Shonari Wynter]

I have been trying to figure the best way to go about financing a property I am looking at. The local bank I am with will give me 85% of the loan for both purchase and rehab. Therefore if the property was $150000 including repairs I need to put up $22,500. My question is, is it smart to get a private loan from another institution to cover the $22,500 downpayment? My hope is to purchase the property and then refinance in 6 month to pull that $22,500 out plus whatever the interest is.

[Kathy Henley]

Tell us more @Shonari Wynter  Re-financing happens when the value of the asset has increased. I am not familiar with South Carolina, will the property appreciate in 6 months?  Set the terms of the private loan with flexibility and avoid a penalty of paying it off early.

Where are your reserves? Borrowing 100% of the funds is quite a risk.  Are you certain of the rehab costs? Are you ready for unforeseen issues?