What should I really be doing?

[Brian Pleshek]

With the purchase of my current rental, once it is leased out, I will be FI.  Here is what I currently have:

My house paid with cash.  Approx value: $210k.

Rental Property 1: $35k mortgage, Approx value: $120k.

Rental Property 2: Paid cash, Approx value: $135k.

I have about $20k in cash, with $40k available to me starting in May 17(can't get it until then).

Rental Properties in my area are in the neighborhood $100k-$120k ARV.

I bought rental 2 in cash at $79k + $10k repairs.

Assuming similar deals in the future, if I were to HELOC my main property(for best rate) for $120k and put the $60k I have available by next May, I can approximately purchase 2 more properties(70% rule) by next summer and have 4 rentals.

But then what? I want to quit my job and start managing rentals and acquiring properties full time instead of sitting behind a desk solving computer problems for others(Maybe i'll work 3 months of the year in the sunny side of the country during winter time to add to my seed money). I'll be stuck until my 4 rentals provide me with another $80k and with living expenses, my estimate would be a 5th property could be purchased in cash in about 3 years. This seems inefficient to me. So, what should I do? HELOC on my main seems risky anyway, so i'm leaning toward not doing that. Should I pull money out of my paid off rental instead? Should I instead, use the $60k I have going for me to do some flips until I get enough cash to buy a rental outright? Should I be doing 80% funding from here on out?

My long term goal would be to have about 6 SFH rentals and then maybe branch out into some 4-plex or higher. I'd like to see $10k-$20k/month in gross rental receipts. What is my best plan for funding my goals?

Thanks,

Brian