Purchase distressed property with private money, refi w 203k?

[Micah Starbuck]

Hoping the well versed folks can answer what I hope is a simple question.

There's a very run down property where the price is higher than it should be for the situation and condition but I'm guessing a cash purchase could help drop the price.

We would want to do a 203k to renovate the house for us to live in.  

I know you can use the 203k to make a purchase/renovate and you can refinance property you already own into a 203k but could we draw equity with a 203k to pay back the hard money loan and pay for renovations?

Thanks