Am I Missing Something?

[Aron Teran]

I've started doing some research on how to best finance my first investment property (buy and hold). Met with a local bank, they offer 80% loan plus rehab costs in a 5/1 ARM at 4.5%. I will be looking for a home in the $60-$85k range, so I am estimating no more than a $100k loan. The rehab $ is paid out in installments as work is completed. This seem like a great rate, especially considering the fact that I'd rather not pay cash for rehabbing.

Am I missing something here?