Cash out refinance question

[Bernice Monroe]

Can someone help me understand Cash out refinance???If the ARV on my home is $178000 and I've paid my VA loan to $157800 would I have enough equity in to Refi and if I do,would it be worth it?I know I have to get an appraisal and have closing cost but im not sure how it works.Im just starting to read up on it.I kind of understand a HELOC but is not really grasping COR.Im trying to do the BRRRR strategy but with my own home which I will eventually rent out. If I were to cash out is the money that I pull out added to the $157800 or how does that work???

[Kyle J.]

@Bernice Monroe Unfortunately, you're currently at about 88-89% LTV, which means you only have 11-12% equity in the property (the previous poster's numbers were a little off). With that little equity, you realistically won't be able to do a cash-out refi or a HELOC on this property.