Question about the refinance part of the brrrr strategy

[Jonathan Puerta]

I'm not sure if I'm understanding why people refinance in the brrrr strategy. It seems to me that if I refinance I'll get cash but I'll lose my cashflow. Say my mortgage is 1000 I rent it for 1500 I'm cash flowing 500. Now if I refinance I'll able to pull cash out but then my new mortgage would increase, potentially wiping out my cashflow... can someone please elaborate when and why this would be beneficial. Thank you