for over 3-6%, it’s very difficult to do it that way.

Set up a second mortgage or HELOC the day after close. (harder to find, but still exist.) Use that to pay the contractors.

anyone with a lien will have to be paid at close.

See if the contractors have leins on the property. I doubt it, but if they do it may give you a little leverage. Talk to your loan officer (best if you’re using a smaller company than a large bank) and see if they can give you any straight answers. Also tell the seller that you will not pay them for equity YOU put into the house, you’ll be happy to pay what it was worth when you started renting it. Look over your option to buy agreement if you wrote one up, there may be a loop hole provided for you. I hope you can figure it all out. Good Luck!

Unfortunately, when you purchase a home the lender will base your loan on the appraisal or the sales price, whichever is lowest.

Investor guidelines do no allow the buyer to get cash out at closing, regardless to whom it may be paid.

I am afraid that you are going to need that equity loan after all.