Win Win Rehab in Escrow

[David V. Stephenson]

I put in a bid on my first RE Investment property. It's owned by the bank, it has been on the market over a year and it's in need of some serious TLC. The bank is not in a hurry to sell and I would rather get traditional financing versus hard money.

My thought is to offer a long escrow period with a very large earnest money deposit with the contingency that I can use this money for rehab while in escrow. If I can't get my financing approved, the bank gets all the repairs. However, when I get my low rate financing locked in I get my first brrr property ready to rent.

Will the bank allow this? Is this too risky?