Hard money + refinance = free income property

1) If the property truly is worth $110K and its an investment property (vs. one you occupy) you will only be able to finance to 80% of that value.  Maybe 85%.  Maybe less that 80%.  Certainly not 100%.

2) Many hard money lenders require some of your own case in the deal regardless of the values. A few do not. Those typically let you borrow up to 70% of ARV. So, if that property is worth $110K (per an appraisal by the HML's appraiser) you could borrow $77K. They HML will charge points and interest. For a six month loan (usually cannot refi for six to 12 months using a new appraisal) points and interest would be about $8K. You will have some purchase closing costs. So, you might be left with $67K for purchase plus rehab, not $80K as in your example.

3) Rehab is an essential component.  If you pay $80K for a move in ready property, then its probably worth $80K, not $110K.  Its buying a junky property and fixing it up where you add value.