Does this Refinance/Retirement strategy work?

[Joel W.]

This idea just poked my brain and I am wondering if it works or is realistic.

Say you have a portfolio that cash flows $100K annually, and you own a property free and clear. You refinance your free and clear property every year for $100K, say every July, on a 12 month loan. Your cash flow pays off your loan within 12 months. Your $100K that you received at the beginning of the year is tax free becasue it is a loan, and your cash flow is tax free because it is an expense used to pay off the loan.

Does this work? or am I missing something here?