I NEED YALL ADVICE PLEASE

[Jason Malabute]

So I started the year off with 2 goals 1) buy my first laundromat 2) 6 units (originally SFHs was my goal)Ive been studying laundromat business from mid January to now Then 2 things slowed me down very slow refi on 2 properties (long story but still trying to fight reappraisals) and COVID19
More info about me I have a disability, My w2 income is very low, It is hard for me to get a job because of my disability, my primary residence is free and clear, I have 3 rental units right now (1 has a mortgage and 2 I am trying to cash out refi as mentioned) and Im very liquid.

Heres what I am thinking (tell me if this makes sense to ya'll) due to COVID19/RECESSION:

1. Focus my efforts in buying a 6-10 unit apartment in my market (Indianapolis ). Put laundromat on back burner for next year after apartment is stabilize
2. open a HELOC on my primary residence and use combination with cash to purchase first small apartment

Exit strategy use rent to pay HELOC monthly payments and then after 12 months refi property and pay off remaining balance of HELOC
FEARS:1)When I open HELOC and pay for part of apartment what if I over leverage my HELOC. It takes time to get units rehabbed and rented out. What if in the first month of acquisition the rent and my W2 income is not enough to pay HELOC monthly payments? 2) What if I lose my W2 job (very strong possibility in this economy ) and with my disability its gonna be almost impossible to get a job (please dont lecture about disability rights lol)3)If I dont miss a payment on my HELOC because the units are not rented out right away wouldn't I be jeopardizing my primary residence that I own free and clear and stress free right now?4) If I use all my cash in this apartment how am I gonna buy a laundromat next year?
How much cash should I keep on the side?
I see life as a chess game and this recession as a crucial part of the game. If you were in my shoes how would y'all play this? What move would you make?

BTW I AM NOT INTERESTED IN PARTNERING WITH ANYONE ON THIS DEAL SO PLEASE DONT DM

[Jeff Fox]

Jason,

Overall that plan makes sense and seems like a good one. You are correct that using a HELOC from your personal residence will put that at risk. I would be really careful putting your own home at risk. If you have some reserves to pay the HELOC payments for an extended period of time, you'll probably be ok. Personally I wouldn't want to put my home at risk right now depending on rent payments to cover the HELOC. We are just at the Beginning of this economic crisis and there is too much uncertainty around people's ability to pay rent. Of course, it depends on your situation and risk tolerance. I am still buying but only with cash that i can put at higher risk. Just be careful and model for worst case scenario - it just might happen.