BRRRR refinance question

[Raj Parwani]

Need clarification on cash flow during refinance phase: 

Purchase 200k; initial down 40k; rehab cost 20k ; suppose ARV 250k; rent from unit $1400; so if I refinance then the amount I would want to take out would be the initial loan of 160k + 60k of my money to put in the next house. At 4% with PIT the payment is appr $1500 with the HoA dues of $250. So my cash flow is negative $100. Unless one is buying the property at very low price then it will possibly work for positive cash flow.

Need a better grasp on the BRRRR strategy. Confused??

Thanks