Self-financing -- Snowballing Method

[Kyler J Sloan]

I plan to buy my first house by the spring, but would like to have a plan for financing properties as I scale long term, but am not sure how feasible my current plan is, considering that I have not heard of it before.

I would like to remain as self sufficient as possible with the financing, and avoid relying upon portfolio or private lenders.

Pre- note: my annual salary will be roughly 200 K, I am single, and have reduced my expenses drastically (spending no more than 12,000 a year on personal expenses). I will also be targeting vacation rentals, nearby the nation's most popular national forests.

Phase 1: scale by buying one property roughly every 4 months for first three years (averaged -- fewer in first than second; fewer in second than third), until I have the maximum of 10 conventional loans which I am permitted.

Phase 2: Snowball all cash flow and income into each house in order of loan age, and take out a home equity loan, in addition to another conventional loan, in each payoff event ( i.e. when first house is paid, get another 10th conventional loan, and take out home equity loan secured by the newly paid house, and use each to purchase 1-2 more rentals).

By following this method, it should be possible to achieve exponential growth, in spite of the fact that only conventional methods are being used -- and, even come to the point where every new property is "Self-financed" -- secured by another asset which I own.

I would be interested in knowing whether this is ill- advised when considering asset protection, ect. I am new to real estate, and would like to have a schema for what I intend to do before getting started.

Thanks in advance for any advice.