Possible Acquisition Strategy

[Rafael Norat]

Brainstorming a bit and wanted to get your opinion if possible.

Issue: Want to buy property for buy and hold, but will also consider fix and flip if it makes sense. I qualify for conventional 20% down mortgages on properties of interest, but fall short on the 20% down payment.

Possible Acquisition Strategy: Use short-term, non-conventional funding to acquire the property and cover repair costs. Upon completion of repairs, I’d sell the property if it makes sense. If not, I’d seek a 20% down conventional mortgage for the ARV and use the established equity to cover the 20% down payment costs.

Is this feasible? From what I've read, it seems as if there are potential time restrictions in refinancing dependent on the loan establishment. At this point, just trying to address whether or not the established equity can be use to fund the down payment on the long-term loan.

Thanks..