Can I BRRRR only using 30 year mortgages?

[Ted Baker]

Hi BP Community,

Has anybody cashout refinanced a home that was bought using traditional financing? The reason why I ask is because I would like to stay away from HM lenders as I feel like i am under the gun to pay them back asap. Any negatives to this strategy? Hypothetical scenario below.

Property 1 - Purchase Price: 100k

20% Down Payment  - 20K

Renovations - 15k 

Rate with Bank A - 5.5%

After a month of renovations I went to Bank B and asked for cash our refinance. Lets say the property was appraised at 155k. Bank B says they will give me 75% of LTV (155k*75%) = 116,250. After all closing costs I would break even and use my returned down payment to rinse/repeat. Anything I might be missing here?

Thanks!