BRRRR Method - Don't you go more in debt?

[Jason Cook]

Hello, I am 23 years old, new to the real estate market and I am thinking about buying a house with in the next year. I have looked into the BRRRR Method but seems very capital intensive. My question is on the refinance when you take the equality out of the property aren't you going more into debt or am I missing something here? Then the more houses you buy the more in debt you are. (Repeat)

For example: You buy a house for $100k with a $20k down payment and put $25k into repairs/fixing it up. Then refinance the house for $150k. Then you take the $25k out to pay yourself back from the down payment. But at the end of the day you still owe $150k on the house so wouldn't it be smarter to leave the money in the house? Along with your interest will be higher by taking the equality out of the property ($150k*5%=$7,500 vs $125k*5%= $6,250). 

If there are other methods I should look into or the proper way I should do the BRRRR Method I am open to input!