how does refinancing work?

[Wassim Moukarzel]

Hello, 

I am just starting my real estate career (I bought a couple of best selling books and started reading) and have a question regarding refinancing:

1- If I understood the concept well, refinancing is great in real estate because you can buy a house at $100k (made-up number), fix it up to market value at $150k let's say, so you have an extra $50k in equity that you can get out through refinancing, is that correct?

2- If so, then my question is, is this actually a good strategy? Won't we have more debt accumulated through the refinancing? 

Again, I just started reading a couple of books so sorry if my question is a stupid one :)

Thank you in advance for your help!

Wassim