Is this a good plan?

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Hello all,

Let me start by giving some background on myself. I am originally from NJ, and I serve in the Navy and I am currently stationed in MD. I bought my first home here last summer. I will be leaving the Navy in about 8 months, and I do not plan to live in MD for too long after that. So at that point the house I bought here will become a rental property.

I eventually plan to move back to NJ so that has been where I am looking to purchase my next house. I regularly check the Fannie Mae site for the foreclosures they are selling. I recently found a 2 unit multifamily for sale at a pretty good price for the area. The house needs a little cosmetic work, but it does not appear to be anything major.

Here is my plan for coming up with the finances for the house, and the area I would like some feedback on. I currently have about 50k of equity in my current house, and the new house is listed at 131k. I do have some savings, but I would like to do this next deal without tapping into that if I can. So my plan is to get an equity loan for the 50k if possible, then use about 30k of that for the down payment on the new place. Then around another 5-10k for any cleaning, or repairs that may be needed. The remaining 10-15k can be kept as reserves to make the monthly payments on both the mortgage and equity loan until the house gets filled with renters. I calculate that the 10k should last for around 7 months which would be more than enough time to make any repairs and find renters.

What do you guys think of this? In my head it seems like a good way to make the deal without much, if any, money out of my own pocket, besides maybe closing costs which I would be ok with.

Thanks for any advice you guys can provide!