How does Refinancing Work?

[Kyle Lam]

Hi All,

I had a question about the BRRRR strategy, specifically the refinancing part. If I were to buy a property with cash and pay for it all upfront, the next steps would be to the renovate and then rent it out. When I would get to the refinancing part, how does this work in my favor in terms of getting money out of this investment and moving onto another one? I know that if I were to use a loan, I could renegotiate the terms in the refinancing part; however, if I am buying with cash how does the refinancing benefit me and how can I pull money out from this investment so it is not tied up and that I can keep investing?