How does refinancing work?

[Aryelle Collins]

I need help understanding the correct way to do this correctly and if the numbers will even make sense. Here is the scenario:

I own my primary residence free and clear , great credit and can qualify for just about any loan. I don't want to use my equity but I want to take out a loan for a 220k duplex with an ARV of 315k in an area that is going up. However, the duplex needs about 25k in repairs. I was told that I would have to take out a hard money loan to pay for the repairs and then refinance with the bank. The property will generate about 1325 per month from rent. The property is in a low crime area and in a very good neighborhood. How does refinancing work? Im assuming I just apply for the loan use the money to get it fixed up ASAP, rent it out immediately and use that money to pay back the hard money. Is there a chance of me not being able to refinance the property and what would happen in that case?