Although I recently worked as a mortgage loan originator for about 3 years prior to the subprime thing, I'm a newbie to creative financing. I have the opportunity to purchase a townhouse in Scottsdale, Arizona in a highly-desirable location called McCormick Ranch within a gate-guarded community. The property will appraise for $417,000 or more (recent comps show the same floor plan listed as high as $450,000).

This property was constructed around 1979-80, and has nearly all original fixtures. Despite the fact it's in good condition, it could use some updating and TLC.

The home can be purchased for $349,900, and the seller will do a wrap on his existing first mortgage. I would need $20,000 to complete the purchase. I would live in the home while updating and/or rehabbing it. In all likelihood, I would stay in the home and not flip it.

Is borrowing $20,000 secured by a 2nd mortgage, and then refinancing in 12 to 24 months to take the 1st and 2nd mortgages out... a realistic approach to acquiring this property? Are there other options or techniques to consider or try? Any advice or tips would be greatly appreciated.