Should I use a HELOC like this?

[Ibrahim Yamini]

I’m pretty sure this question has been asked before, but I wanted to be specific.

As I’ve studied books and members on this site, I think I have a better understanding of how to move forward but I need to make sure.

Based on a lot of your info, I might be able to do this.   Right now, I have a credit score of 763, my house is worth $371K and I owe $218K

If I'm not mistaken, I should be able to get a HELOC worth $78K

Based on the information above, will my bank allow me to get a loan for a second house up to $325K?
If so, I would then use the funds from the HELOC to make a small down payment. After that, I would use the rest of the HELOC funds to pay any closing costs and hire a property manager who can locate and lease tenants.

Finally, the tenant pays the mortgage, but I pay whatever I owe to the HELOC with my own money?

Once I pay the HELOC back I can do it again, for maybe 1 or 2 more houses before the bank says I'm over leveraged?

Is there a step I’m missing?  This concept just seemed too simple 

Also, I’m not sure if you’re allowed to post businesses but if this is the way to go, are there any lenders that would be good for this in the Phoenix area?