BRRRR cash-out refi hiccup

[Derek Sperzel]

I recently began interviewing local credit unions after learning they require lower or no seasoning period, versus a traditional lender, for a cash-out refi on investment properties.  The issue I am finding is that they will only loan against the amount I paid for the property (purchase price + rehab cost), and not the appraised value.  This is my first time attempting to work with a credit union and I would like to know if this is standard practice?

I can always go back to the traditional lender and get a loan based on appraised value, but they require a 6 month seasoning period.  I originally started speaking with credit unions thinking they could help my money grow faster, and therefore allow my business to scale faster.