Cash-out refinance

[Ryan Glauser]

Can someone help me out with understanding cash-out refinancing multi-family properties. For example, If someone purchases a property for $1M @ 75% LTV and wants to refi, let's say, 2 years later. How do banks underwrite for the refi? Do they apply a higher cap-rate to appraise the buildings because of the higher risk of a cash-out refi? Do they use a lower LTV? Anything else important to know?

Thank you!!