First, I'm offended that OP would confuse me with @Andrew Syrios.
ok here is the deal, I have PERFECTED this process and while it is tricky, it's possible to extract 100% of your funds from a deal with no seasoning (minus transaction costs).
the key here is 3 things:
1. your ALL-IN cost needs to be 75% of the ARV, because you're going to get a loan for 75% LTV. if you have more than that in the deal, there is no chance. Less is fine, but you'll be leaving money on the table. 75% is perfect
2. you must get an invoice for the contract work and your insurance costs and put them on the HUD-1 with your title company (have them put it way down at the bottom on the 2nd page or as an addendum). Then you'll pay the ENTIRE amount of the purchase and rehab and insurance all at once.
3. you must pay this total amount in YOUR FUNDS. sorry, no hard money, no loans, no borrowed money. They lender will be required to source the funds and it has to be all your money (401k/Heloc are COOL!). Once the total amount is on the HUD-1 and it's paid for, the title company will send out the checks for rehab, and the INSTANT you have a tenant in the building (they will check at appraisal per guidelines) and a signed lease, you can start underwriting.
I have done this multiple time, and the quickest one was completed in a tad over 8 weeks (that's from the day I paid in full, to the day I received all my funds back)
the one big caveat seems to be finding lenders who will participate in this. Instead of telling them your whole process, it might be easier to just ask them if they can do delayed finance and will they finance 100% of what's on line HUD-1 line 120. Then you don't have to explain all the details, though my best practices recommendation is find a lender who really knows this process and is willing to help. There is nothing lender specific about this program, it's all fannie mae so very standardized.
I hope this helps. I know this process can seem a bit detail intensive at first so I'm always around to help answer questions.
