Using conventional financing as my exit strategy?

[Kevin Porter]

Say I use a hard money lender to get my foot in the door of an REO, once it's rehabbed, I put it back on the rental market. (As my exit strategy from the hard money loan) If I use conventional financing to get a refi, would I still have to put 20% down payment on the refinance, or do banks treat that situation differently because it is already in my name?

[Brie Schmidt]

@Kevin Porter the loan process and qualifications are the same regardless of if you are buying the home or you already own the home. If you buy the house using cash with a HML lets say for $50k and put in $25k and the ARV is $100k the bank will allow you to put a loan on (20% - 25% down depending on the asset class) the $100k after 6 months.

I caution you, if you are going to use this strategy, make sure you qualify with a bank on the ARV before buying it. Otherwise you are stuck with a very expensive and mad HML