Can you use the BRRRR strategy on initial purchase?

[Chris Rendall]

Hello BP Community!

I'm still learning about the BRRRR method but it sounds like the refinance is always happening some time after the initial purchase of the property. I was curious to know if you can apply the same strategy when you initially purchase the property if you purchase below appraisal. For example, you get an offer accepted for $100K, and the purchase appraisal comes in at $120K, can you get the initial loan for $120K and pull some equity out of it right off the bat?

Thanks!