Feedback on my plan to create equity with 203k renovation

[Alexis W.]

I think this is my first post here. :) I'd like to know if there is anything I'm overlooking with this plan.

I'm going to purchase a rehab, renovate it, refinance and use the equity to further invest in real estate. I plan to live in the home. I will use either a 203k or the Fannie Mae product.

I created a simple spreadsheet calculation that accounts for buying at the right price, estimating renovation cost (from pictures right now), and only being allowed to refinance to 80% of the ARV. I'm estimating ARV based on renovated houses that have sold in my target areas recently. I recognize that could change. I've also gotten historic sales information for my target areas to identify those that tend to be more stable and are not declining.

Ideally I'd do this with a multifamily but they are hard to come by in my price range and areas. I'm still looking though.

I've found a handful of properties that fit perfectly and would leave me with $20k-30k plus equity that I could use in a HELOC or similar product to put down payments on future investment properties.

Does this make sense? Are there any failure points that jump out to you?