Anatomy of a refi in BRRRR

[Lee Korak]

So I'm unclear on how a refi would work exactly on a property with a loan on it. Here is a somewhat real-life scenario to see if I am thinking about this right:

Let's say I have a rental property that I purchase for $65k. I put $13k down, plus $3k in earnest/due diligence, bringing the money down to $16k total. So the loan is for $54k.

I then put $25k of rehab into the house and it then appraises for $100k. If I do a cash out refi after a year (not factoring in right now the amount I've paid down with a year of mortgage payments), how much actual cash can I pull out? 

So if cash-out refi is 70% LTV, and the value is $100k, with an original loan of $54k am I looking at being able to pull $70k out (70% of $100k)? Or is it $70k minus the $54k of the loan, equaling $16k? Or is it some combination of this?