Using Hard Money Loan to purchase/fix up house, then refi into a conventional primary

[Artem Moskalenko]

Hello All,

I am thinking to purchase a fixer upper property using a hard money loan, fixing the property up and then refinance into a primary conventional mortgage loan and live in the house as my primary residence. Few reasons I'm thinking about using hard money loan to purchase the property:

#1.) The property is listed on the MLS as a cash only fixer upper and will not qualify for a conventional loan.

#2.) Using hard money loan to have a competitive "all cash" fast close offer. 

I saw a similar post about 7 months ago by "Mike Romano" with a similar question, however I didn't feel like he explained the reason why he was planning to use a HML instead of a standard conventional loan in the first place. I understand HML have lots of associated costs to them but the main reason im considering this option is because the home is listed way below market value and is a cash only property. The plan would be to take 4-6 months to fix up the property, and then refinance it into a 30/y fixed primary mortgage and then move in/live in the property as my primary home. Another possible option would be to do a cash out refinance to get some of my rehab money out of the property and only leave my 10-20% downpayment (whatever the HML lender requires to purchase the property)

I would love to know if this is possible or if there are any issue with the plan, especially in the refinancing into a primary portion. 

Thank you in advance.