Am I thinking about this right? - apartment refinance

[Josh Robbins]

Hi All, Newbie question for you all... I'm looking at a 6-unit right now and I believe there's a value add opportunity as the landlord currently pays about $8k annually in oil and electric. My plan would be to purchase the property, split the utilities and have the tenants pay them. Then refinance based on an NOI that would be $8k higher. Here's my question...If the prevailing cap rate is 8% then pushing this $8k to the tenants would increase the value of the property by $100k right? Upon refinancing, assuming 75% LTV, I could "cash-out" $75k? Just want to make sure I'm not missing anything before I make an expensive mistake. Thanks