100% Financed - Infinite CoC Return

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Hello all,

Has anyone ever stacked a Hard money loan 80% LTV and a Personal loan 20% LTV and then refinanced the personal loan into a PLOC at a lower rate to avoid PLOC guidelines that state funds can not be used for investment purposes. In this case, technically the funds would be used for debt consolidation since they would be paying off the personal loan with a lower interest rate. If so how was the process?

I ask since I have found a condo where I would like to try this strategy I will only cash flow approximately $50 a month after PITI, HOA, & Reserves, but my CoC would be infinite since I would have no funds invested into the deal. I would also gain control of an asset and be receiving monthly principal paydown and the appreciation of the asset.