Question About BRRRR

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So how important is appreciation when some of you are running your numbers going into a deal? 

When a property value falls during the rehab (which granted it probably won't be much) and a 75% loan to value has to be met, you're stuck paying off the private money investor the difference during the refi? Im just trying to understand this better. I'm going thru Davids book right now, just haven't completed it.

If you buy a new construction home as a rental, obviously probably no rehab is involved. When you go to the bank for a refi how do you get your money out of the deal? Do you get a loan worth more than the current one hoping appreciation has brought the value up and while paying down the mortgage and pocketing the difference from the new loan? Since you're creating equity into the home during the rehab on a beaten down property. 

I haven't really been able to find anything specific to these questions, thanks to all that reply!