buying property from brother in law

[Gloria Mirza]

My brother in law just bought a property that needs major rehab work (plumbing, electrical, kitchen cabinets...).  He used cash to buy the property.  If I purchase it from him with cash after he has only held it for 1 week, rehab the house then get a cash out refi, will there be any problems/objections by the lender?  I plan on purchasing it from him for roughly the same as what he paid for it.

What if I have him rehab the property, then buy it directly from him using a conventional loan?  Would that cause problems?  Are there rules against buying a property from family using a conventional loan?