Cash-Only REOs and refinancing

[Louis Hiza]

Hi all,

I recently came across an REO property that is weeks away from becoming live to bid on. It is in my families immediate area and would be a perfect duplex rental property (it would cash flow about $500 a month, and is decent condition). I have great inside intel on the interior and structural as I know one of the renters, and I know it would be rent ready immediately, and with a little more work, could be cash flowing $650 a month.

The listing agent says the place is Cash Only, As Is, but based upon its appraised value and what it was bought for in 2002, I believe a competitive offer would be about $80k. As I am young and do not have that kind of liquid savings, what would be the best way to proceed? A hard money lender with no financing contingencies? I'm afraid that when the bidding comes online, I will be beat out by other cash only investors. 

Would another option be to pull together the competitive (say $80k) cash offer from family and then quickly refiance the place after it is cash-flowing to pull all that equity back out?

Thanks so much!

Louis