Conventional Financing for a BRRRR?

[Natalie Siedschlag]

Other than having to pay closing costs twice and also not being able to potentially buy a property for a greater discount up front, why would using a conventional loan be a bad idea for a BRRRR, as compared to hard money?

Consider a scenario in which a property is currently rented with a lease in place for another 6 months. I wouldn't be able to renovate the property until it is vacant, and it is currently in decent enough condition that the bank would approve conventional financing. The current lease still allows for a little cash flow ($200 or less). Considering a purchase with conventional financing (either 20% down or 15% down with PMI) and then in 6 months do the minor reno (8k or less) and refinance with 30% greater ARV over purchase price.

With HML interest rates being 10-12%, can I just compare that amount of interest against the cost of having to pay closing costs twice? What other costs am I failing to consider?

Thank you, this will be my first BRRRR.