Refinancing Multifamily Question

[Danil Sidorov]

So I just a have a quick question about refinancing in multifamily. This is a hypothetical example, but lets say you buy an apartment complex for 1 million dollars at 25% down payment. In 7 years the property appreciates to 5 million so you decide to refinance. The bank give you a loan 75% of the new value so 3.75 million, and you pack back you old loan. That leaves you with  2.75 million dollars tax free. So in the end I have no money in that deal, Im still getting the cash flow from it, and i have a new debt of 3.75 million which after i pay back my old debt i can do what i want with it (like purchasing new multifamily deals.) Can someone confirm to me if this is right, or if I am missing something. Thanks!