Rookie Refinance question

[Jacob Phillips]

Ive been turned on to a deal in my town for two 3br/1ba houses, neighboring each other, for $69k total. They are older homes, and one for sure has space to add at least a second half bathroom. My agent (who happens to be my aunt) ran comps on the area and we believe both could appraise between $60-70k. I've spoken with a local bank and they will let me do 10% down at 5.75%, AND will refinance me 80% of the ARV with no seasoning period.

My silly, rookie question is, how much does that cash out value equal? Is it the 80% ARV minus original loan? I've run numbers with the $60k ARV, making the total $120k and refi of $96k. Is there something I'm totally missing here? Still working to make my first deal happen but this sure seems like one to learn more about.

For context this is a larger rural town in mid MO, my hometown, and good starting point for me