There are a couple different ways to attack this, but the short answer is Yes. Several of my clients buy with cash or hard money financing under and LLC, renovate the property, and then either refinance into a traditional investment loan or do a "cash-out" refi. That being said, there are a couple things to consider: As mentioned by others, it's likely the bank will only cash out 70 - 80% of the after repair value, and there may be a "seasoning" requirement. Additionally, if you end goal is to keep as much cash liquid as possible, this simply may not be the best way to do it. Another option is to purchase the property with hard money financing. Typically you can get a loan for 70 - 75% of the ARV in the form of an interest only balloon not with rates ranging from 11 - 14% plus points. Terms generally range from 3 months to 5 years. This type of loan will allow you to leverage your investment, keeping most of your cash liquid, while providing you money for both acquisition and repair of the property. Depending upon your strategy and ultimate goal, once the renovations are complete, you can "flip" the property for a quick return on investment or lease the property and refinance out into a traditional investment loan.
If you's like to discuss these strategies further or are looking for a hard money lender, feel free to give me a call.