Cash out refinance clarification

[Alyssa Teepen]

I recently took out a HELOC on my primary mortgage and have used this to purchase a home for 32,000 with rehab cost of 150,000 and ARV of 220k. The goal, initially, was to sell this property, however we would really like to keep it to rent at this point. We are about 1 month away from completion and I need to finalize our next steps.

The problem is... I cannot wrap my head around the cash out refinance portion of this situation despite my tireless efforts. I have gone through scenario after scenario and feel like I am not getting accurate numbers to go off of. 

Please help me, in simple terms, understand the process. I know we will need a renter prior to doing a cash out refinance and we will have to determine the seasoning period of our lender, but going off of 6 months at this point for simplicity. Rents for single family home, 3 bed 1.5 bath in this area run around 1,00-1,400/month. Property tax around 200/month and Insurance 130/month.

Based on a Heloc at 182,000 when all is done my plan would be to do a cash out refi to pay this down/off and use remaining cash flow + W2 income to pay the rest off. Working off of the scenario that we would get 70% of our appraised value of 220K, our cash out would be 154,000. Correct? Would that just be a check or deposit in the bank that we can then use to pay down our Heloc? Then what would the loan amount on the home be at that point? 154,000 I take it? The remaining 66,000 remains as equity in the home. When then can this be accessed in the future?

Thank you for any help!