Cash deal & home equity loan

[Daniel Martinez]

Hi all! Forgive my ignorance as this is my first time posting and I’m new to real estate investing.

There’s a home I’d like to purchase that’s in need of a rehab. They’re asking for $150,000 cash. Similar homes in the surrounding area are selling for around $280,000.

My question is this, suppose I could get a private loan for the $150,000 and purchase the house. Assuming the value of the home increases after some work is done, could I then turn around and apply for a home equity loan to pay back the initial private loan?

Is this strategy plausible?