via the BRRRR, are rehab costs an expense but refi just a loan?

[Michael Koch]

After my first year of doing a couple BRRRRs, I'm trying to wrap my head around the money we pull out via refi. Is it accurate to say that the money put into the rehab considered an expense (i.e. painting, new fixtures, etc), but the money received back after refinancing is now considered taxable but just part of the loan?