Seller financing private lender cash out refi

[Jonathan Bonck]

I need help understanding this scenario. I have a house for sale at $100K with seller financing. Give the seller 7% interest rate but I am using private lending for the 20% down payment of $20K. I will pay the private lender 7% return monthly. This deal has a 3 year ballon. Once I've  acquired the property and it has been 6 months to a year, can I execute a cash out refi? I want to refinance out of the seller financing into a conventional 30 yr loan and pay off the seller and  pay back the private lender the $20K. My question what is the best way to refinance out of the seller financing and pay off the private lending? Not sure I could perform a delayed financing ( cash out refi). From what I understand that happens only when you pay 100% cash. 

Thanks you so much! 

[Tom S.]

@Jonathan Bonck

As mentioned by others, you need to make sure you're getting a good discount off the appraised value of the property. If you're essentially doing 100% financing of the appraised value, even living in the place you'll be pressed to get a 95% LTV loan (there won't be enough proceed to pay off the seller financing and the private lender). If it's an investment property, then 70%-75%. There may be appreciation in a year, but there could also be a decline.

Make sure in advance you'll qualify for another mortgage, as you mentioned you already have one property.

Good luck!

- Tom