Beginner strategy... advice from my realtor

[Frank Inman]

Good morning, everybody. My fiancee and I are interested in getting into flipping and renting properties. A strategy my realtor threw my way was this, buy the first property all cash a 30K home or so for 20k. Put about 10k of work into it, rent it out and then take out a HELOC on it after getting it reappraised.

He tells me the first property could rent for 900 a month and he's seen people get a HELOC for 60K after the home is appraised six months later. 

Then use that 60K for a flip property. He told me it's always better when you invest with somebody else's money.