BRRRR Calculating Help Please!

[Candace Ly]

Hello BP! I only just started my RE journey and have been listening to podcasts and reading. I am still pretty confused on how the BRRRR method works when it gets down to the nitty-gritty. If I purchase a property, rehab, and then refinance, won't the mortgage be higher and my monthly payments are higher? If the bank gets me a 75% LTV, I wouldn't have any more equity and will have a loan amount for the full 75% of my property's ARV value?? Could someone break down a hypothetical situation for me with numbers (see below)?

I don't have enough cash on hand to purchase a property in full, but I do have family members that could lend me the full amount/construction costs. I am also unsure how private money agreements are typically handled. Does the lender make money off of interest or at the end of the refi I give them a portion of profit? 

• Purchase price: $100,000
• Renovation cost: $50,000
• Cash borrowed from lender: $150,000
• Gets appraised for: $300,000
• Refinance for 75% of LTV: $225,000
• Monthly mortgage: ???
• Equity: ???
• Profit: $75,000(??) but not really since I would have been paying the lender interest?

If someone can explain to me clearly, I would really appreciate the help!! I'm struggling to understand the calculations.