Question on BRRR investing

[Rickard Risberg]

Hey guys, I recently listened to the newest podcast (327) on BRRRR investing and I realized that there's one thing that I don't understand.

Let's say you buy a 50k house.

The house is trashed and you have to spend 30k fixin it up.

This makes your total investment 80k.

The house has now appriciated in value (thru forced appriciation) and is now worth 120k.

You then find tenants (a family) and they are now renting it out for 1k a month.

After this you go to the bank and refinance the house that is now worth 120k so you get a loan 75% of its value which is 90k.

Now you get all of your capital back + 10k more, but the thing that I can't really understand is that THIS 90k is a LOAN and you have to pay interest on it right? So now this loan interest has to be paid off every month and eventually the loan itself has to be paid off. Do you then remove the loan payments from the rent which is 1k?

Or do you simply find a new house worth perhaps 50k and rehab it for 30k, refinance?

If I'm understanding this method correctly you basically have to keep investing otherwise you're going to be stuck with a loan at 75% of the house for 30 years?

Sorry if this is unclear but I hope that someone can understand and make sense of my question.

Thanks in advance!

Rickard