Which path should I take to close the deal? Please help

[Richard Bader]

A little about the house. I have found a foreclosed house, all brick 4 bedroom 1 bath. The tax appraisal shows $57,000 but I believe the house would appraise over $60,000. I estimate it needs about $5000,00 of repairs. I got the bank down to $37,000. I would like to get a loan for $55,000 and put the difference in the bank and then rent the property for $600.00 a month. Now here is my problem. Do I buy the house with my equity line of credit and then do a refinance? Or do I just try to get a loan for $55,000? Will a bank give you more than what you are paying for the house if it appraises?
Thanks So Much