Advice on Funding Strategy to Aquire new SFH Rental Properties

[Tom Giles]

I am 61 and preparing for life after retirement beginning this summer. I will have 2 pensions and some rental income that my wife and I should be able to comfortably live on without immediately drawing SS when I turn 62. I would like to acquire several more SFHs in the $80-120K range to rehab and turn into rentals. My immediate regional focus will be NW FL between Panama City and Pensacola.

With the loss of earned income after retirement, I do not think I can immediately qualify for a conventional loan for investment property. I do however have about $180K in equity on three homes, neither of the three are my primary residence. I also have $50K in cash.

I am thinking that I could obtain HELOCs on a portion of my equity to add with my cash to make a cash offer and purchase of my first SFH after retirement. After I rehab the property and get a lease, I should then be able to qualify for a conventional loan on that property to free up my HELOC and some of my cash for another purchase.

Is this a feasible and sound strategy?