Buy and hold strategy - Cash out refinance to pay back hard money

[Lora Bostic]

I have an investment property worth 400k, the seller is asking 200k cash. I don't have the cash but I would like to buy and hold the property. With the new Fannie Mae rules allowing cash out refinancing for investment property would it be wise to get a hard money loan to acquire the property and then pay it back with the cash from the refi? I would meet the refi requirements since this would be my first investment property and I wouldn't be purchasing the home with another mortgage. The seller owns the home almost free and clear (small 15k) loan which could be paid at closing as well..... does this sound like a good strategy? I'm a newbie btw...please help :-)