BRRRR - Cash out refinance questions

[Michael Walstedt]

Say you buy a property for 250k cash, rehab and rent it out. When you get to the "refinance," how are you supposed to refinance if there is no mortgage to refinance? Are you only refinancing if you initially purchase the house with a mortgage? From my perspective, it seems like this step would be a cash out refinance if you initially purchase the house with a mortgage and a HELOC if you own the house outright.

Thanks!