Can you get cash out when you refinance out of a hard money loan?

[Jeff Joseph]

I have been told by people that I trust that when you refinance out of a hard money loan, you can NOT get cash out.  Other people have told me that you can.  I understand that you could make it a specific cash-out refi, but I think an individual can only have one of those running at a time.  

Example: 

ARV = $500k Purchase and rehab = $250k

Max Hard money loan = 70% of ARV = $350k

Max Refi = 75% of ARV = $375k

Difference from Max Refi and Purchase is roughly $105k.

My question is: Can I take that $105k and use it elsewhere without it being a cash-out refi?  Or do I have to lower the refi amount to match the purchase price? 

I think laws are different in every state, and I operate in Texas.

Thanks!!