Can I refinance my house? (VA Loan)

[Jared Kampschroeder]

We have been trying to sell our house for a while. It is in VA. We have been moved out for almost a year and live in CA. Our buyer backed out on closing day a few days ago but not before moving it to the right several times due to lending issues.

Number time.

We bought our house for 120,000 with 0 downpayment on a VA loan with 4% interest. We have made no progress on the principle since we have only had the house almost 2 years.

We recently got appraised for 140,000. 

-Can we refinance and have 20k available to put towards another property? 

-Will this reset our VA loan?

-Do you think this is a good opportunity?

I have read about situations like this but would like to know if anyone has done it before and if there are any questions I am missing.