Financing my first deal.

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Hi all. I am getting ready to do my first deal. I know someone who rehabs houses in my area for a living and he set me up with what seems to be a very good deal. I do not own my own home yet but will early next year when my lease is up. In the mean time I have decided to get into rental properties (I know this is backwards). The deal that we have put together is that he has an investor that is willing to finance a project. The investor will give me a hard money loan for the purchase and rehab. When the rehab is complete I will take out a mortgage (refinance?) and pay 59000 back to the hard money lender. The home has a tax value of 68000 and sold for 78000 back in 1998. Based on this and recent sales I figure the home to be worth between 75-80k. The question is would this be considered a cash out refi as I would own the home outright on paper? If so would there be any out of pocket expense that I can expect? What are the cost implications of going up to a higher ltv? Just trying to look at this one from all sides.