In real estate, equity refers to the dollar amount that the property owner has paid off on their loan. A crafty property owner can refinance their first mortgage into a loan that is more than they currently owe. They are entitled to take out the remaining difference as cash – this is known as cash-out refinancing. Cash-Out Refinancing and Real Estate Investments Many house-flippers use cash-out refinancing for multiple purposes: Purchasing power. Refinancing your mortgage can give you the capital necessary to invest in multiple properties at once. Home rehab. You can use the cash for home improvements that will