Cash Out Refinance

[Nick Foundas]

I was wondering if someone could explain how a cash out refi works in more detail. This might be an option for me but wanted to get a greater understanding before I went into a local bank, I figure the less basic/elementary questions I have for the bank makes me look like a stronger candidate. I created a fake scenario/example below, is this the gist of a cash-out refi? (Im more of a visual learner so like using examples). Purchase Investment property for $250,000 (non occupied) with 20% down payment (loan amount would be $200,000). Use $20,000 in savings to fix up the property) and then rent it out. Allow 6 or 12 months to pass (depending on bank requirements) and then ask bank for a cash-out refi based on new appraised value. Bank appraisal is $315,000. If you are able to cash-out refi, what is the max amount of cash that you can take out based on the above #'s? What # would your new mortgage payment be based off of?