I'm confused with the BRRR strategy

[Gabriel Martinez]

Hello everyone, I'm technically still new to BP and I have a question about BRRR strategy and can't seem to understand it.

Say, I'm looking to purchase my first property, I run the numbers and everything looks great for a tenant. Fast forward 6 months and my ARV is significantly higher and I'm ready to refinance to withdraw the equity I made off the house. Wouldn't my numbers not work anymore because I have a greater loan amount and in turn wouldn't be able to make enough off the market rent anymore? Somehow I can't seem to wrap my head around this concept. Would someone please explain this to me please?

Thank you in advance,

Gabriel Martinez