Private money structure

[Account Closed]

I have been listening to some of the podcasts, and I've stumbled upon this financing option through private lenders. I want to know if I understand this correct so please chime in if either I'm correct or if I'm missing something.

-Find a house worth 120k

-Buy it at a good deal for 65k

-Private lender funds me the 65k plus another 15k for rehab at 11%  interest 

-Hold the property for a rental cash flow 

-pay the lender interest only for 3 years (or how ever long the term is for) at $244

-after "seasoning" the property and waiting the year, cash out refinance the property with a fixed 30yr at 80% of the ARV (which is now 140k)

-use the 112k from the cash out and pay back the lender with his full interest (and points?)

-pocket the estimated 23k and repeat with the next deal

Am I missing something or could this be correct? BTW I know its almost impossible to find a lender that will provide 100% plus rehab costs but I've heard that it could happen.

Any feedback would be appreciated