Cash offer BRRRR refinancing options

[Anthony Pantuso]

Hello Bigger Pockets community!

I'm working my first BRRRR deal. The property is going on market soon with an asking price of $220K. I estimate a rehab of $40K (very conservative). The ARV conservatively would be $270K, maybe closer to $300K. The seller wants a cash offer. I have a HELOC on my primary residence for $250K, so I can easily use the HELOC to offer cash. I would like to immediately refinance to a conventional loan very soon after closing, then turn around and use the recharged HELOC to fund the rehab and then finally refinance again to pull my cash out.

I spoke to my lender today who told me that Fannie/Freddie loans would require me to first hold the property for 6 months prior to the first refinance. The lender told me I can pursue other financing options, potentially through a local credit union, for the first refi and then after 6 months refi with them. 

So my question is, is the info I received from my lender accurate? How are you handling the same situation?

thank you!

Tony