quick question on refinancing and loans on cheap houses

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Hi all,

I was recently contacted about a house for sale in the Ohio region.  The numbers show that it would cashflow, but a couple interesting things got brought up.  The house is only 52,000 dollars.  I could buy it outright in cash and get more cashflow, and then i was thinking of refinancing when i wanted to have more cash on hand(it should still cash flow even after refinancing for 70%).  The person I was talking to said lenders wont give a mortgage or refinance on a house this cheap.  Is this true?  If that is the case I am not interested.  Also, is there a problem of having to wait a long time for the house to appreciate enough to make up for selling costs if i ever want to sell the house?

Thanks