BRRRR (Refinance) Clarifications

[Bryan Magno]

Greetings, everyone.

I have been reading/watching on this BRRRR method. I don't get the Refinance part, particularly on the 20-25% cash refinancing for another investment property from your previous mortgage ("M1" for brevity). Assuming your cash-out home equity refinance from M1 reaches the 20-25% requisite for a new property investment ("P2"), what is the narrative for the remaining 75-80% balance of P2? Will there be a second mortgage on P2 to pay off the said remaining 75-80% balance? In that case, then, there will be two mortgages M1 and M2? Thus, increasing your monthly expenses.

Kindly enlighten me, please. Thank you.