$200K HELOC – Best Way to Build a Local Rental Portfolio in Kaufman County, TX?

[Matt Smith]

Hey BP community,

I'm based in Kaufman County, TX, and just unlocked a $200K HELOC. My goal is to replace my wife's teaching salary within the next 5 years, ideally through rental income.

Here’s what I’m thinking so far:

• Markets: Kaufman County (Specifically Kaufman, Terrell, Forney)
• Strategy: Mix of light-reno BRRRRs and turnkey rentals
• Target properties: $200K–$300K, 3/2 SFRs or small multifamily
• Projected rents: $1,700–$2,000/month
• Capital: Planning to use up to ~$140K at a time, keeping 6 months’ interest in reserve
• Roadmap: Build team → First light-reno BRRRR → First turnkey → Scale to 4–5 properties by end of Year 2

I’m including rough example deals to make it tangible:

Strategy	Location	Purchase	Reno	ARV / Refi	Rent/mo	Net Cash Flow/mo
Light BRRRR	Terrell	$200K	$15K	$250K / $187K	$1,700	$450
Turnkey	Kaufman County	$300K	$0	N/A	$2,000	$500

I’m posting this to get feedback before I start making offers.

Questions for the community:

1. 1. If you were starting with a HELOC in this market, what strategies would you prioritize for risk-adjusted growth?
2. 2. Light reno BRRRRs vs. turnkey: which would you start with to minimize risk while learning the ropes?
3. 3. Any neighborhoods, property types, or pitfalls in Kaufman/Terrell I should be aware of?
4. 4. Team tips: who do you rely on for contractors, property management, and lending in smaller TX markets?
5. 5. How do you balance speed of scaling vs. maintaining a safety buffer with HELOC-backed deals?

Appreciate any advice, lessons learned, or real-world experiences you can share. I want to make sure I’m thinking about this realistically before committing capital.