Mortgage Broker Questions

[Steve Guerra]

Hello Everyone

I have some questions about borrowing from a Mortgage broker.
Well first off I found one in my area. They require 25% down for any investment property. They can only fund properties 70k and up. Their Non Owner occupied interest rate is between 5.25% to 5.75%.

Now what i want to do is Purchase a property, rehab it and create equity. Once equity is created I will refinance (to the amount it will cashflow).

Now my question is lets say i purchase a property it cost me 70k I put 25% thus borrowing 52k. I rehab the property and after words they appraise it and its worth 120k. I put in 20K in it. Can I refinance and get my down payment and the 20K i invested back? I spoke to the Mortgage broker and she said that i should save all my receipts so when they refinance they can add that into the appraisal. Or maybe I din't understand correctly..

Anyways I appreciate your help i advance!!!