Coach me through a BRRR

[Chris Mackinlay]

Hello BP. 

I have a house under contract. 3/1.5. ARV is high 150's. Purchase cost is $104,500. Repair costs including a buffer are $11k.

It's HUD, so I am stuck paying closing costs as well.

Plan was to do a 20% down conventional loan. The appraiser called a plumbing issue. The house is winterized and the appraiser is requiring the utilities to be turned on before signing off on it. I'm still working on understanding this, but the important part is that I cant get lending without water being on and a contractor placing a repair bid to be held in escrow. HUD won't let us turn on water. See my problem?

I reached out to a HML I know and he offered me the acquisition cost for 2pts and 12% apr.

Help me understand how I refinance a house I own. If I want to refi for $125k to cover all my costs, do I still need to put down 20% for the loan?

Another way of asking: I want to refi for $125k when the ARV is $158k. Do I need to put any money into the refi (other than loan fees, etc) or is having 20% equity in the property sufficient for a lender to lend on the house?

Hope that is worded well.

Thank you!