Cash Flow After the Refi in BRRRR

[Dennis Byrne]

I feel like I'm missing something regarding how to retain positive cash flow after the Refinance part of BRRRR. Say you buy a property and after your all in costs for purchase, rehab, etc, it cash flows a few hundred dollars per month. If I did everything right the property is worth substantially more. Now when I do a 75% LTV cash out refi on the new value of the property my mortgage payment is obviously much higher than the original payment, which takes away my positive cash flow... Am I missing something or is the answer as simple as I can only cash out as much as the rent/positive cash flow allows?