BRRRR Method: Refinance

[Daniel Mendez]

Hey BP,

I am embarrassed to say this but I still can't grasp how the whole refinance step works within the BRRRR method.

So from my understanding is say I purchase a single family home for $100,000. My mortgage will be $1,000 after down payment and stuff. After rehabbing, hypothetically speaking, it's ARV is $200,000.

So when I refinance the house at the new amount of say $200,000 my mortgage will go up but I will still get the $100,000 difference right?

I am very confused. Any help would be greatly appreciated