How to get equity out of a remodel to avoid downpayment

[Deborah Alsup]

Hi,

We are remodeling a home we don't own. I know, big no no. We had the place under contract for $240k total purchase price with $60K down, and right before closing the back came back with at least $100K worth of repairs that needed to be done before they would do the loan. So we worked out a deal with the sellers to lease the place while the repairs were being made. Now the repairs are done, we have put at least $100K into it, and it is worth at least $340K. I thought we would be able to use the equity in the home for the down payment on the loan, but the bank is still asking for $60K cash down payment, let alone pulling more money out of it. I have listened to tons of BRRRR podcasts, but I seem to be missing something here. How do I get the cash out of this remodel, or at least get the bank to use the equity for my down payment? They wanted the title in our name for at least 6 months before we can refi, and I was hoping to avoid refinancing all together because of the double finance charges. Is there a way to do this all in the purchase of the home? Thanks.