Strategy Analysis - New Investor

[Andrew Lee]

Currently looking at the following scenario within the next 12 months. Any/all feedback, advice, help will be greatly appreciated! Sell primary SFR which I pay $4,500/mo (PITI). Move into rental with a monthly budget of $2,500/mo. I have a budget of $250k following the sale of my primary SFR with reserves. Purchase four SFRs (3 bed/2 bath) in Memphis one at a time for under $120k. Target rent $1,000 - $1,200, depending on specific location. Once a tenant is under contract, move on to purchasing the next until I have a total of four SFRs. With an all-in budget of $600k. Each property would be on a 10 year mortgage (est. $1,200/mo PITI @ 4%) so I would be responsible for any amount not covered by rent. Use my excess monthly budget of 2k ($4,500-$2,500) to put into paying off the four, ten year loans to pay off within 6 years. Goal is to own the four properties outright in six years, cash out refinance ($400k out of 600k assumed value) to put down as down payment on primary home, and hold the properties as cash flow properties on new 30 year loans. Am I in over my head?