Adjusting HUD-1 settlement statement after remodel?

[Christian Becker]

So, I was listening to a bunch of podcasts recently while working out, so I unfortunately don't remember who was on at the time, but I had jotted this down on my notepad in a hurry.
The following was mentioned and discussed:
(1) buy a property in cash
(2) remodel the property in cash
(3) call the title company/attorney and have them add the remodel cost to the HUD-1 settlement statement. This was apparently possible without going through escrow, but could also be done by putting money into escrow and then paying the contractors out of that.
(4) do a Fannie/Freddy delayed financing deal, including the purchase + remodel because they are now included.
Sounds like the ultimate sweet deal to me since Fannie/Freddy takes the lesser of LTV and the settlement statement, as long as the ARV is pretty good. One way to get your remodel 'financed in'. Anyone doing this?