Possible second and third deal, heres my plan, please analyze
So I currently own one SFH which is rented. Heres my plan for the second/potential third:
I have the opportunity to buy a SFH (currently rented) for $105k that has been appraised at $120k. I want to take out a hard money loan for $105k to buy the place, and then pay a 15k lump down on the mortgage so I will have 25% equity on the house. I then intend to refinance the property into a conventional investment loan to pay back the hard money loan. Once the house has been refinanced, I want to take out a HELOC so I can put a down payment on another (third) house.
What do you think of this plan? Good/bad? Anything I should add/remove/consider?
Any help is greatly appreciated!