BRRRR strategy question ...... The REFINANCING part ??

[Michael Dunn]

I have a question regarding how the .... " Getting ALL of your Money back " from doing the Refi.

Here is an Example given in the BRRRR Strategy PDF that I just got done reading ( grea read/Very informative ) ,

In other words, let's go back to those numbers we used earlier. We found a property that had an ARV of $150,000. We purchased it for $75,000 and put $30,000 into the rehab. At this point, we have $105,000 into the purchase. Most lenders will allow you to refinance a property for 70% of the ARV (in other words, they will do a 70% Loan to Value [LTV] loan on the property). Well, it just so happens that 70% of $150,000 is $105,000… so we could theoretically get back 100% of our invested capital. That's right — we're going to refinance this property with a low­interest, 30­year fixed mortgage for $105,000. This will pay back whatever source of funds we used on the original purchase and rehab. In this example, the only money out of pocket will be the closing costs. After the refi, you should have a completely stabilized rental property that shoots off a little bit of cash flow and has roughly 30% equity just sitting there. Plus, you'll have all your money back

So my question is ...... How am I getting all of my money back , in order to repeat the BRRRR strategy again and again ?

When I do the Refi. , I'm actually NOT getting any EXTRA cash out from doing the Refinance correct ? If this is the case, then How do I get to where I have the Cash on hand, to pay the Down Payment and the Rehab Costs for each of these properties ( I'm assuming that I will need $35,000 in Cash to do each of BRRRR property .

I'm guessing that I will have to have the Money for the Down Payment and the Rehab costs on hand , to do my very first deal , and then after the Refi. from the first Investment ( BRRRR ) property, that I will get that Money " Back " to me in the form of Cash so that I can use that Cash for the down Payment and rehab on the next property, and then the next property, etc. etc.

Sorry if my question sounds confusing ..... I'm trying to word my question in as ledgible way as possible .  Thank you for the help