Trying to understand the numbers

[Blake Ramsey]

So here’s an example Brrrr just to see if I understand how the numbers work.

House valued: $100k

DP: $20k

Loan: $80k

Rehab: $20k

ARV: $160

Refi: $160k * 75% = $120k

Cash out: $120k - $80k = $40k for next deal

So if I take that whole $40k for my next deal, would I then have 0% equity in the property? I read that some banks require some equity left in the property after a cash out refi, would I “buy” that equity using part of the $40k I pulled out.