4-Plex - Over-Appraised??

[James McNight]

I am curious what the impact could have of an over-appraisal on a 4-plex. Would Lenders see the 140k contract price and not require a down payment due to all the pre-established equity in the property at time of purchase? 

Alternatively, is the only way to access this pre-establsihed equity a re-finance?  Seems silly to have to re-finance when you havent yet closed on the property - Are there legitimate ways of say financing 200k with cash-out at time of origin purchase or am I just thinking like a rookie?

Contract Price: 140k @ 20% down

Appraisal Value: 260k