Strategy review. What do you think?
I've always wanted to invest in real estate, but I never considered it as vehicle for cash flow. Since I found BP my interest grew and made me read a couple of books, listen to the podcasts, checking the BP blog, etc.
Anyway, I wanted to post a possible strategy that I was thinking of doing for my first real estate investment.
With $70,000 cash I want to buy a SFR to flip it and rent it. I've been checking around my area and I think it is possible to rent it around $1,200. And the ARV could be around $110k to $120k.
After the house is rented out, I'd like to get an equity loan on the house for $70k and do the same process again.
Of course I've considered the cost of renovations to be between $10k to $15k and allocated a portion of my budget for this. I would be doing a lot of the repairs myself, so there is room for saving more money.
My main question is about the equity loan on a rental property, is this possible?
Any feedback or guidance is greatly appreciated.
Thanks.