Revolving credit fire SFRs

[K. Mitchell]

I am wanting some feedback about using a revolving credit line to buy SFRs. Here is the context: I own a few houses outright and have others with mortgages. I use a local bank for my mortgages. They are willing to extend a credit line secured by a few of my paid off rentals. The line would allow me to buy two additional rentals with cash--it would allow for some repairs as well. The bank is willing to finance properties off of the line on 5/1 arms at 80% LTV with no seasoning requirement. They are on board with doing up to 20 of these based on my income history etc. What I was thinking about doing was basically buying fixers and flipping them to myself or putting in low all cash offers with motivated sellers for properties that don't need much work, with the goal of not putting much into the deals. I recognize the risk in the 5/1s. Finding deals liket this is possible inmy market. Really I just want some confirmation that others have done this successfully or pointers if I am missing something in my thinking.