Private Money - BRRRR Question.

[Brandon Sok]

If I understand the Refinance piece of the BRRRR Method correctly... The banks will only pay 70% LTV on the appraised ARV. So a house worth 180k, I could refinance at 126k. Is this correct?

My follow up question is this: If I am using private money for purchase and rehab costs, the private money loan + interest should be less than 126k so that it can be paid off by the refinance?