I am surprised you found a bank willing to do this.

In my experience, you can absolutely use hard money in bank owned reo auctions...you still don't generally get access and thus need a lender who does need an appraisal in this scenario. 

Should I be concerned the bank may have issues with this? 

Also, banks typically use a valuation process that does not favor the BRRRR strategy. 

Should I talk to an appraiser before the bank gets an appraisal?

@Hank Bank where are you located?

Hey @Jaycee Greene someone on our team handles the acquisition and lending/banking portion, we only do the monthly bank draws for construction costs!

In theory it would be wonderful to get mortgages at 3.5% down and search for value-add deals to near break even on cashflow after year 1-2, banking on appreciation from a highly-leveraged investment in a growing economy.

.: Quote from @Jay Hinrichs: Quote from @Matthew Banks: Very interesting post John.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.