Are banks still doing cash-out refi's for investment properties?

[Kevin Diamond]

I was recently told from a lender that amid the Covid-19 crisis, banks are no longer doing cash-out refinances for multifamily investment properties. Is this true? If so, I imagine this would be quite impactful to the BRRR method. They essentially said that for example if you initially purchase (and finance) a home for 200,000, put 100,000 of work into it and then refinance it at say 450,000 at a LTV of 70% the most you could finance is the amount actually borrowed against the property ($200,000). It was always my understanding that if you were able to refinance it at $450,000 at a 70% LTV you should be able to get $315,000, pay off the original $200,000 note and keep the $115,000, hence the whole BRRR strategy. Has there been or is there starting to be a change in this paradigm or does this just sound like the case of one particular lender with tighter standards?

Side question, if you're refinancing an investment property (two family) is the appraisal value based on comps or on income/ cap rates? If its the latter, do you need to have a substantial (like a year) of rental history on the books for the property? 

All thoughts welcomed!

Kevin