Home equity loan on sever rehab to finance rehab

[Tucker Platt]

My business partner has been around the Bigger Pockets Community for a few months.  We are considering several properties for our first investment.  One of them looks to be a complete gut job due to fire damage (fire did not break through plasterboard according to pictures).  The house is in foreclosure and we may be able to get it for a good price.

My question is if it is possible and/or wise to use an equity loan (providing we purchase the property in cash) after purchasing the property to fund the rehab.  

If the house was in good condition and livable the comps run in around $90,000.  Our estimates is that the rehab will run $25-35,000.  Having never worked with equity loans, I do not know if a lending agency would even issue an equity loan or equity line of credit on the property.

Thanks.