Cash then ReFi vs Conventional Financing

[John G.]

I understand the first half of this strategy... By buying a property in cash, it gives someone the upper-hand in negotiations vs someone using conventional financing. Then when the deal is done, refinance the property with a mortgage.

Now, don't both Cashout Re-Fis and HELOCs have higher rates than conventional loans?

If so, what are the advantages of this strategy when in the end you're stuck with a higher rate mortgage than if you just did it the conventional route? (Other than you get the property and the other guy didn't)