Refinance- how do you make money off that?
I heard on BP Podcasts multiple times- especially from Co-host @Brandon Turner that he bought a house as soon as his daughter was born, he bought a multi-family property for a 15 year note so that when his daughter wants to goto college (or use that money to invest in real estate) that she can just re-finance and take that cash out to pay for it.
I heard something to the affect of: you can re-finance that and take the built equity and use that cash for college?
How does this concept work? How can you-refinance on a home that you already have most paid-off? Please provide examples as they are the best way for me to grasp concepts.