Tell me how my buying plan is bad/dumb!

[Mason Keith]

I'm fairly frustrated at the moment with my attempts to get some solid RE deals.  Originally I really wanted to start out with multifamily properties, but I've looked at tons, and all the ones that seemed plausible on paper were really terrible once checking out further so no properties as of now, boo.  I'm striking out hard there :-/.

What I'm considering now is buying foreclosures in the $50k range cash, spending roughly another $20-25k in repairs and six months down the road doing a cash out refi and basically starting the process over buying the next property.

I currently plan on holding properties, not flipping, and renting them out.  Specifically looking for neighborhoods that are renting ~$1k/mo range.

Cliff note version:  Buy house for $50k cash, use another $25k cash to repair, rent for $1,000/month.  6 months down the road take a cash out refi, and purchase next unit.  I know there are angles I'm not thinking of, or am not even aware of and I'd love to hear why this plan will fail, or what needs to be changed to give a better chance of success.

I appreciate any and all feedback and sorry if I'm slow to respond.  I'm currently deployed so I don't always have access to the internet, thank you!