Getting higher cash out refinance by selling to family member?

[Joe T.]

I'm looking to do a cash-out refinance to get cash to reinvest. The appraised value of the property came in lower than I wanted. 

So instead of going through with the refinance, can I just sell the property to my wife at an agreed upon price and have her get the mortgage at that higher value? 

This way, we would essentially get the cash back at a higher price point. Let me know if this is a tactic that people use and if it makes sense to move forward on. 

Thanks!