Cash Purchase Refinancing

[Collin DeWese]

Hello everyone. 

Here is the situation I am currently in and trying to resolve. About a week ago I bought a single family rental with cash and I bought it way under value. I would like to refinance it asap for the appraised value but banks are telling me due to federal regulations they can only finance up to 80% of the lower value between purchase price + rehab costs or the appraisal. Is this accurate? My goal is to refinance this property to be 0 dollars invested at the very least. I would prefer to refinance and do a cash out off at least 80% of the appraised value however. Any information is much appreciated.