First offer Pending........

I posted this in my journal, but thought I would like more input so I am reposting this deal here...

I would like to know your thoughts on the technique presented here as I have never really done this....I just BELIEVE.....that it should work.......

I am going to speak to my lender tomorrow about getting pre-approved. I have found a house that is in decent shape, and has a very desireable layout, and has about a $67K equity available on it. I intend to do this NO MONEY DOWN. I will of course have to come up with earnest money, but thats no big deal. The house needs MAYBE 10 - 15k in clean up and repair and I already have renters for it. I am hoping to get an ARV loan on it for about $160k picking it up for $120K. House comps in at about 180K. Bank is asking $140k and they originally countered at $127k without even mentioning the disrepair issues. At 120K I will go into escrow and write a check for the 10% down that is available to me here at this time. That $12K check will be written at time of close, and I am expecting that once I hand my check to the officer ....he in turn will hand me my $40,000 check. Mind you....I don't have the money for the down..THAT MONEY is in the $40K check they will give me. It takes several days for a check to clear, so as soon as I leave the escrow office I am going to my bank and depositing it to COVER MY CHECK. Easy No Money Down, and a great house. Best of all.......I walk away with $28,000 in my hand.....CAPITAL to fund another purchase.