Using Hard Money for a Primary Residence

[Leslie Beia]

Hi All,

In a year or so I will be able to qualify for a conventional mortgage on a primary residence (self-employed). My plan is to find a SFR that I can both live in and run STR's out of. I've been thinking, wouldn't it be advantageous to look for off-market properties, get hard money for purchase and repairs, then refi into a conventional mortgage so I can use a homestead exemption on the home? This makes sense to me but I've not heard of it happening, and I'm wondering if there are reasons this wouldn't work, assuming I've run my numbers correctly and can cover my HML note? Thanks!