Is Immediate Refinancing An Option?

[Bret Habura]

Hi,

I am in the process of buying my first multi-family property. We expect it to appraise for about $20k more than the purchase price without any repairs. What's to stop me from purchasing the home and immediately refinancing to get some of my cash out of the deal? Sure, it would cost me ~3k in closing cost, but I'd possibly be looking at ~$10k back into my pocket.

I know most (all?) lenders require 25% down at closing, regardless of appraisal. But it seems a bit backwards if I could then immediately refinance. My lender has stated there is no required waiting window for a refinance.

Thanks!