BRRR Refinance Question

[Mike Jornlin]

Rookie investor here looking to start by BRRR investing in a buy and hold vacation rental.

I have been doing a lot of due diligence on a vacation rental property with ownership financial distress (the house itself is in decent condition).  I want to buy the property with a combination of personal capital and hard money, do some light rehabbing, and do a cash out refi with a conventional mtg. 

From looking at comps, and personally knowing the area very well, the ARV on the place is 500K (for the sake of easy math). I estimate that I can purchase/rehab/pay hard money fees for a total of 250K initial capital.

If my refi lender will do a cash out refi for 65% of the ARV (assuming 500k is accurate), do I want to cash out the maximum amount I can while still remaining cashflow positive on the rental going forward? Or do I want to cash out only the amount necessary to recoup the initial capital and maximize cash flow?