Two deals but do not know if I should jump ....

[Johnny Quilenderino]

Good afternoon BP,

I have a plan but I do not know if it passes the "smell" test. 50k in six months plan
House #1 Asking price 45k, Zestimate 85k.
-Caveats the home is foreclosed.
Step 1: Buy in cash
Step 2: Get renter in it (1000/Month)
Step 3: Refinance for 60k (I would expect to still be at a DSCR of over 1.25)
House #2 Asking price 49,900, Zestimate 135k.
Caveat this house will have to remain on the market for a at least 6 months (or I find something like it)
This house is also a foreclosure
Step 4: Buy in cash from refi in step 3
Step 5: Get a team of contractors in to clean, and fix what is needed to sell for 135k
Step 6: Sell low, as in place on the market for 120k but accept an offer for 110k
Step 7: Pay off Step 3 and go find another distressed home to fix.
Step 8: Make it rental if step 6 does not work (DSCR would be about 1.25 with this one too)

Deviation could be the following

Step 6: Could also be Refi for 102k
Step 7: Rent
Step 8: Buy two more foreclosures

Does this plan pass the smell test or am I off on my numbers?

I am about two weeks from step 1. I have to find money for closing for the first house.

There would be about two or three months in-between step 3 and 4 max.

Thank you for your time and patience. I appreciate everyone's help!!!

Very respectfully,
Johnny