Rental: HML --> Cash out refi?

[Vickie Y.]

Hi everyone, 

Been on the hunt for SFH rental. Currently have enough to put down a conventional 20% down on a 150-200k SFH. However, I am trying to think for the long-term, and if I am to meet my goal of 20 properties in 10 years, I won't be able to use my own money to sustain this. Furthermore, I doubt any conventional bank will be willing to lend past 4-5 properties.

My question is this: 

Is it possible to use a Hard Money Loan to purchase the SFH rental in cash --> then use a CASH OUT refinance to put the SFH under a "conventional" loan?

So in this scenario: 

Purchase home for 175k in CASH using hard money --> put 10k of repairs into it --> Put tenant in --> ARV now 200k (cash in 185k) --> CASH OUT REFINANCE 200k @ X % over 30 years --> pay back HML --> cash flow off property (rent - new mortgage)

1) Is this just a convoluted way of talking about the "BRRR" strategy?

2) What kind of lender would be willing to do a cash-out refinance?

3) I've heard of "seasoning periods" - does that mean I would have to own the property for X number of months or years prior to being able to refinance? 

4) In the ideal situation, how long does the process usually take from: under contract --> cash refinanced out - and HML paid back?

Thank you again everyone for all of your help and advice! 

[Chris Mason]

Originally posted by @Vickie Y.:

In that case, I suppose I would fall into just wanting to rate/term refinance the hard money. Are there lenders that will do this? Are they conventional banks, mortgage brokers, portfolio lenders, etc?? 

 Well, there's me. We can't do it if the whole reason you took out hard money is because the property is not financeable. We also can't do it if the reason you took out the hard money is because you do not qualify for a traditional mortgage. And you will want a tenant in there that has signed a lease and made the security deposit if your personal income cannot support that new mortgage, your existing debts, and your personal housing expenses. 

Those are the basic deal-breakers that we might have. It makes sense to ensure that the above is addressed before taking on that hard money, if that is your game plan, so you don't wind up stuck in it.