Buying with Cash and then taking out a Home Equity Loan

[Evan Barney]

I am a 21 year-old college student looking to begin my journey into the world of real estate. As a full-time student I have almost zero income, but I am fortunate enough to have received a substantial amount of inheritance money from a relative (lets say around $50k). Obviously, it is difficult for me to acquire a loan given my circumstances and I have been trying to determine the best way to use this money to get started in acquiring rental properties. 

Since I have been experiencing difficulty finding owner financing, an idea I had was to use this money to purchase a home outright for cash. One house in particular I found for $45,000, in good condition, that should rent for between 650-700 a month. Once rented I would then plan to take out a home equity loan on the property to reclaim hopefully 70-80% of my cash. Based on my calculations, taking into consideration taxes, loan payment, repairs, vacancy, CapEx, and insurance, I should be able to cash flow somewhere between 200-250 every month.

I would love to hear anyone's thoughts on this course of action. Am I missing any important details or considerations? Is this a viable strategy or am I better off pursuing other avenues? Any advice is greatly appreciated! Happy holidays!