BRRR Part "Refinance" - Need some help

[Pat Leri]

So help me in the last part of BRRR.

Understand BUY

Understand REHAB

Understand RENT

Don't understand completely CASH OUT REFINANCE.

I'm trying to understand: Do I actually get cash in my hand which belongs to me and can keep OR do I get cash I need to pay back like a loan. Or both of it.

What exactly is the difference between 'refinance' and 'cash out refinance'.

In my case I buy the first property with cash. I don't finance (I do this to push the price down to get close to the 70% rule). After I REHAB, RENT I'd like to have cash again (since all is gone in the first house) to buy a second house.

Additional to cash for a down payment I need a loan (since the cash might not be enough). By right I can get a loan based on my income. Why do I need the house as a security?

I might be in a total wrong path here.