New Investor- Poke holes in my Plan

[Ben Pearce]

Hello,

I'm new here and excited to enter the world of real estate investing. I have been taking in as much information as possible over the past few months (including reading some of the bigger pockets books). I am looking for input (please be blunt) on my current thought process with how my wife and I intend to procure our first rental property. 

In the next 6 months we intend to purchase a single family home that needs some work. With that being said we are hoping to get a pretty decent deal on the property. The thought currently is that we will purchase this property with the intent for us to make it our home for 12-18 months, all the while performing the needed (rental grade) rehab. Once we have the rehab completed we would look to find another property that we can do the same thing to, while converting the first property to a single family rental and repeating the process until we have 2-3 rentals under our belt. From that point we would look for a more permanent residence to move into and transition to buying straight up rental properties by hopefully leveraging some of our equity. Is this a worth while strategy? Thanks.  

[Sam Lewis]

@Ben Pearce everything looks good. Aim to live there for a minimum 2 years and you avoid paying significant capital gains taxes.

Look up the “2-out-of-5 rule”