Cash out of CA, startup investing options in Dallas with no JOB

[James H.]

Hello all,

My family of 4 are looking into cashing out of San Diego and move to the Frisco,TX area within a year. We will be debt free with $500-$800K cash. Previously I gutted our house here in SD down to the studs and rebuilt 80% myself and hired contractors when needed... and I enjoyed it. I'm good at it and see potential that many don't. (I've done buildouts on my 3 previous chiropractic offices turning class B/C into Class A... while getting the class C lease rate.) I'm looking into rental properties as my next career. Now its about trying to find a way for that $500K+ to cash flow properly for a stable quality of life, for a family of 4, as I scale.

I'm having trouble seeing how to cashflow enough income from rental properties to live, let alone scale.

Since we would have no jobs upon relocating it seems only choice is purchase properties 100% cash. I have yet to find the math/property where a DSCR loan at current rates (7.5%) works in the Dallas metro area.

Current Plan if we moved tomorrow:

Buy home 1 100% cash as personal residence. 

AND Buy home 2 with 100% cash as investment property.  Light renovate 1-2 months.  Rent with monthly cash flow of ~$1000

Then buy home 3 with cash 6 months later. Might I quality for a HELOC on home 1 at this point? What percentage of income can you borrow in a HELOC? ? No "job", but 6 month history of income from Home 2 of $1000/mo.

Besides having a cosigner... I only see perhaps DSCR as a way to get cash... unless I grab some other w-2 job in the meantime, but I consider that a distraction from what I want to do long term.

Any suggestions and critiques are greatly appreciated.