BRRRR with $60K cash

[Justin Franklin]

Should've titled this "Can I BRRRR with $60k cash" -

I'm considering growing my real estate investing career using the BRRRR strategy. I've started the process to get a $60K HELOC from equity in my first investment property. My question is...is that enough to start the BRRRR process and invest/fix up a property in an area that wouldn't give me a headache?

Based off of my math, below are the numbers. Would they work? Is this enough to get started? If so where? 

I've done some homework in Cleveland and Detroit, but I'm still unsure of the rehab and ARVs in these areas...I live in CA: 

Property Value: $280K

Mortgage #1: 165K

MAX HELOC (based off Pen-Fed 80% CLTV): $60K

Property purchase price - $25k-$35k

Rehab costs - $23k - $35k

Thanks everyone! Excited to start this conversation. I hope it's engaging and helpful for others as well. 

[Frank Gamez]

@Justin Franklin To be successful in a game of chess or any sport for that matter, you need to be a few steps ahead, something called anticipation. Investing in Detroit sounds easy enough, and appealing too. Who wouldn't want to cashflow 1k per unit, but then what happens? end of story? Each letter in BRRRR is just as powerful as the previous one, so I think you should think about the 4th R in the acronym. How are you going to repeat the process if you tie up all your money in Detroit homes that don't appraise enough for the next deal.

Just something to chew on.