Newb BRRRR Refi Question

[John Kelsey]

I'm getting hung up on part of the BRRRR strategy, can somebody explain it to me like I'm a small child?

Example:   I buy a 40k house, put 8k down and spend 15k on rehab.  Now it appraises at 80k.  The bank lets me refi out 60k (75% of the 80k).  So I got my 23k back that I invested plus I'm 37k to the good to use on another property, correct? BUT....BUT...now instead of paying on a 32k mortgage, I'm now making payments on a 60k mortgage.  I'm still borrowing money and making a monthly mortgage payment.  Is the idea more that now the tenants are basically making the mortgage payment and I have zero risk because none of MY cash is in the property now?

Thanks all, just want to make sure I understand this.  Stay safe!