BRRRR Strategy - Refinancing Question

[Tim Porsche]

Hi all, so since hearing and reading about the BRRRR strategy I have become very interested in possibly doing it. I would be looking for fixer upper multi-unit properties to renovate, rent out and refinance. There are a few areas of the strategy that I am unclear on though and would really appreciate if someone could shed some light on those areas.

1. Lets assume I purchase a fixer upper triplex for $130,000 using a hard money loan and putting 20% down for the house plus $20,000 in renovations. So the total investment would be $150,000, with $30,000 (20%) coming out of my pocket. Lets say the renovations get completed successfully and I have great tenants and have all the units rented out. Right now I have a triplex that's fully rented and is financed with a high interest hard money loan, and lets just say the appraised value of the property is now $190,000. What does refinancing look like when I go to the bank and try to get a traditional 30 year mortgage?

Do I get a mortgage based on the initial $150,000 investment ($130,000 + $20,000 renovations), or a mortgage based on the current appraised value of $190,000? Basically could someone break down how the numbers work, and how (or if) I would still have money in my pocket after refinancing that I could use to purchase more properties? Sorry if this is a dumb question, I'm just having a bit of a mental block here.

Total Initial Investment - $150,000

$130,000 for property

$20,000 for renovations

Financing with Hard Money, Total Out of Pocket Investment = $30,000

ARV = $190,000

Mortgage Down payment Amount = 25% of $150,000 or 25% of $190,000??

Again sorry if this is a dumb question, just trying to wrap my mind around this. Thanks in advance for any input!