2nd home investment strategy
Hi all I'm buying a 2nd home as an investment. I have a room rented in my current home for $1200/mo and I built a guest house that has renters in it for $1550/mo my current mortgage is $2500. I have about 400k equity in this house after I finished the build(I did all of the project management and a lot of the build, I grew up in construction and work in it for about 10 years professionally). I found another property to build on for 210k the build will cost me 300k and another guest house will cost me about 40k. I should be able to rent the new guest house for $1500-$1700 and mortgage payment will be 3100 taxes and insurance included at 4.6% . I'll take $65k in a heloc st 5.29% to make the down on this new house construction loan. After build the house and guest house will be worth 800-850k on the low end. Long term goal is for equity and sell every 2 years. I'd like to use the equity to build/buy duplexes in a cheaper area in the midwest where I grew up so I have enough passive income. Is this a good strategy, what am I missing?