Crazy Idea . . . Hard-money, Rehab, New Notes, No Money Down Ever

Hey BP peeps!
New to this whole deal . . . have an idea/strategy, want to see if it holds water:

Find a distressed/undervalued property

Come in as a "cash" buyer, using Hard money

Get the rehab work done with said hard money

Get traditional mortgage to take the note once the rehab is done and I'm ready to move in to live there . . . AND ALL for no cash (no cash needed to get the hard money for original purchase and rehab costs and then no money needed for the traditional lender to take the note (at 80% of the LTV, essentially my "20% down" would be the equity that I forced into the equation).

So you buy a distressed place for $300k, and put $75k into rehabing it (all via hard money). Then you get it rehabed and get a traditional loan which puts out $400k (which pays off the hard money) . . . which is 80% of the appraised $500k ARV . . . So i basically get it all done, and intro a traditional mortgage on what ends up being a $500k property for ZERO dollars out of pocket.

Am I crazy? Thanks for the insight!