Using Hard money for buy and hold
So new to world of real estate discover it in june and been reading, listening, to podcast, going through the forums search ton of information. My plan is get into buy and hold rental and the occasional flips but main focus now is buy and hold. I been think of getting a hard money to purchase and rehab a distressed property and do a cash out refi to pay the hard money back, it seems the most fastest way and smartest if the number right it would generate more cash flow instead of putting 20% down on a property already rent ready or close to it.
Little info on me I am 27 in the ATL area I plan to really pull the trigger on this in early 2020 by then i will have around $10k saved up in the mean time I plan to keep doing research this winter I will talk to few local bank and credit union on their cash out refi to see their requirements I am currently around mid-to-high 600s credit score. I purchased my primary home 2 years ago and there are few small jobs here and there that needs to be done so i am going to find some contractors and test them out on few little things in my current home to find a good one and build a relationship so when i purchase my investment i have 1 or 2 i worked with and can trust.
ideally right before i go talk to hard money lender i want to have my bank/credit union already on board know my plan to refi with them when it all said done
I have my contractor all ready looked at the property with me and gave me detail rehab estimate so soon i purchase the house we can get to work.
So for starting out is this a good plan? Should i look at other options of getting started?