BRRRR investing question?

[Achille Clendenning]

Hello BP community, I am realatively new to this concept of BRRRR investing and I am trying to understand the whole Refinancing part of the deal, so if anyone would like to chime in about this I would like to hear your thoughts on the subject. When you refinance after having renovated a house you are able to take out the money that you put into buying the house in the original loan and use that money to buy another house with most of the same money? It seems like this I don't fully understand how a bank would give you the money back from the original deal because then it seems like you don't have much equity in the house and are taking on more debt by using that money that you take out of the original deal with no more funds than you had originally. I feel like I am either not fully understanding the concept or my understanding is just plain wrong. Can someone please try and go into a bit more explanation about this concept? Thank you in advance. AC