Looking to purchase a new house and rent my current house - looking for guidance

[Micah Starbuck]

Hey all, looking for a little guidance from the more knowledgable folks around here and would appreciate your input.

The broad picture is that I'm looking to move out of my current home that needs work and keep it as a rental.  The home that I'm thinking of purchasing includes a 1 bedroom basement apartment.

The house I'm looking at is older but almost move in ready.

My plan (and where I'm looking for guidance) is whether my strategy for borrowing makes sense or sends up any red flags.

To repair the house I own so that it's ready to be rented I would to tap the equity through a refinance or a home equity line of credit/loan.

To purchase the other house I would want to take out an FHA loan.

In order to repair the home I have I need to get approved for the loan, locate a general contractor and try to get things wrapped up in under a month.

In order to purchase the new home I need to be approved for the FHA loan, contact a real estate agent and go through the regular process of purchase.

Minus the actual numbers (which I'm working on) do I have the general process right?  Am I missing anything that would be a giant surprise or kick in the ***?