Cash out refinance - how does equity change?

[William Wright]

How does your equity change in a commercial mortgage cash out refinance? For example:

If you have a $500k 6 unit apartment building that you originally put $125k down on, that you intend to raise rents on. After you raise rents, the banks valuation is $700k.

What of that $700k will be your new equity, before you pull any of your cash back out?

Trying to figure out how cash out refi’s effect your debt and equity, and thus your debt service amount.

Thanks in advance!