Question About Using Cash or Hard Money Loans...?

[Odille Remmert]

Hi :) We're just getting started in Peoria, Illinois.Really enjoying the podcasts, and making excellent use of the Bigger Pockets Calculators (and loving it! :) ). 

We have a question about finance that we'd love some input on...We have some money coming through, shortly, from the sale of a couple of properties, overseas. We were planning to put some of that money in an account as "back-up" and use the rest for deposits/costs to get started with a rental property or two and then move forward from there. However... 

We've just been talking, and now we're wondering if the following makes sense...?

1. Leave the cash in an account, and borrow the deposits/rehab costs etc. from a hard money lender, then...
2. Refinance, after the rehab is done, then...
3. Repay the hard money lender, then...
4. Repeat - leaving the cash as security, in an account

Is this a sensible idea... or are we missing something...?