Tax question - Cash out refi? I don't understand

[David Huynh]

Hey guys,

I'd like to understand the tax ramifications on cash out refinances. Is this a way to dodge paying taxes until a later date?

Let's say I find amazing deals a couple times a year and purchase with cash. 

Purchase price: 100k

Renovation: 10k

I get a tenant to rent it for $1500 and they pay all utilities. Now I have an interest in getting my cash out and it is appraised for 200k and the lender will do 75% LTV. The time frame is 8 months after the initial purchase and the surrounding properties have elevated in value and/or I just bought it in distresses position to score the property for 100k.

After the cash out refi: 150k out - 110k = 40k in my pocket. 

Help me understand - do I get taxed on that 40k? Say I did this method 5 times and successfully have 5 properties with 200k + my initial capital (110k), what happens from here?