Please evaluate my plan...
Let me start by saying that I have been lurking on this website for months and love it and feel that I have learned alot. I have also been reading books that have been referenced in this forum. Ok a little history on me. I am in the military and currently stationed in Arizona. In June 2008 I will be retiring after 21 years of service and moving to my homestate of Alabama. I have 7.5 acres and just broke ground on a log home that I will be moving into upon retirement. The land and house are paid for so I will have no mortgage. I have a 01 Toyota pickup that is paid for, I am currently making double payments on my wife's 04 Nissan Quest so it will be paid off the month before I retire, I have no credit card debt, and my credit is good, I will only have approx 10k in savings at this time. Long story short I will be debt free. Now on to my plan.. I plan on creating an LLC and doing rehabs. Funding for the rehabs will initially come by means of a home equity line of credit. After I have completed a couple of rehabs I will move into a phase of rehabs to sell, the next one will be a rehab to hold as rental, back to rehab to sell etc... When my sons are ready for college (currently 13 and 11) I could possibly sell one, if need be, to help fund their college education. Now for a question..My retirement pay will be approx $2000 a month and will be my only income. Will I be able to secure a home equity line of credit with only $2000 a month income so I can get started or would a lender like to see more income coming in every month? I'm a newbie so any input/advise on my plan or financial situation would be greatly appreciated.