Hey y'all I just moved back to CO after 15 years in Austin TX

[Ralph Smith]

Hey y'all I just moved back to CO after spending 15 years in Austin, TX. Been on the FI road for a while and I'm looking to expand into real estate.

I've reading up. Can anybody help explain a scenario that seems related to the refinance piece involved in the BRRRR strategy. Specifically I'd like clarification on how you get your money out.

Let's say you have a property valued at $100,000. You acquired it with a conventional loan and 20% ($20,000) down. You've been making payments 2 years and you now owe only 60% ($60,000). 

So is it the case that you would attempt to refinance for 70% ($70,000) of that value meaning you would get a check for $10,000 that you could then use for future investments?

That's my understanding of how the math works, but in reality I still have my $20,000 in the house and I'm just pulling out the equity. Even if I used other people's money I could only pay back $10,000. 

Obviously the numbers are just made to make the math easy and this isn't exactly BRRRR case study, but I've ran across this situation a couple of times and I'm just wondering if there's a way to get you money out in this scenario. It seem like it would be similar to leveraging against existing properties, but I'm not seeing the real benefit. Unless you have a ton of equity and you just want a low interest loan.