Using Intra-family Loan instead of Cash out refi

[Alex Jones]

I've got a property under contract. I have the cash to purchase it outright, but I'm looking ahead at ways to get most of my cash back out. The ARV is 100k. It's under contract for 52,500 + both sides of closing expenses. I'm anticipating 6k in repairs.

My first thought was to do a traditional cash out refi, but I want to avoid the seasoning period and the headache of finding a bank willing to do a cash out refi on an investment property, particularly at such a low value.

I'm considering an intrafamily loan of 65k thats properly attached to the deed. The loan would be at 0.19% interest, with interest only payments, and I'd give my family member 65k as collateral (in addition to a lien on the home). 36 months, with a balloon at the end.

After getting the home fixed up in 2-3 months, I plan on going to the bank to get a standard term and rate refinance on the intra-family loan.

Would this work?