BRRR - ARV for cashout refinance

[Saika Maeda]

Hi all, 

First timer here. Would appreciate sharing your knowledge. 

I've been analyzing many properties and came across a struggle. When you do a BRRR, you want to get ARV as high as you can so that you can get most (if not all) of the money you invested. However, if your ARV comes out too high (at the appraisal for cashout refi), then you also need to pay higher mortgage that compresses your CF. It seems to me that fighting for higher ARV (to get as much as money out of the property) when getting appraised for post-rehab property is a double-edged sword. Am I missing something? Will the lender for cashout refi be using some other appraisal value when coming up with the loan amount vs. down payment, instead of ARV?

Thank you for your help in advance!