Sub 2-Refinancing and HELOC?

[Nicolas Ake]

Hello, 

I am looking to receive a home from a family member. I believe it would be considered buying subject to/assuming their mortgage. There is about $40,000 left on the mortage. There's about $40,000 in equity but the ARV is $95-110,000.

Can you refinance the home after receiving it? The interest rate is currently close to 7%? Also, do I have the right/ ability to take out a HELOC or cash out refi after repairing to acess the equity for further investment?

Thanks