Construction to permanent loan on an investment property strategy

[Kyle Mitchell]

I just purchased a lot in a popular vacation area. I intend to build a home that will be rented out to offset the costs of ownership.

I can find construction to permanent loans on second homes easily. I can find financing for investment properties easily too. But I can't find financing for CONSTRUCTION of an investment property. They want to send me to the commercial loan department where the rates are awful, closing costs are high, and the requirements much more robust.

What if I just get a second-home construction to permanent loan, wait 12-16 months for it to be built, spend another 90-120 days furnishing it, and then refinance into a traditional 30 year fixed as an investment property? Are there any tax implications or mortgage barriers to building a home under the "second home" plan and then converting it to an investment property shortly after its finished?