use home equity loan to fund buy and hold long term strategy

[Ben Schembri]

Basic strategy I am contemplating is buying a SFR outright to rent out. Then take a equity line on this for 60% LTV and purchase an additonal foreclosed SFR to rent out. Then use both rental incomes to pay off the equity line.

As far as background info goes: my brother and i currently own our house with ltv of 56% and we own commercial real estate free and clear that we rent as well. I have found that equity lines are more challenging for commercial and I would hate to jeopardize the commercial property.

Currently, I only show the rental income from the commercial property on my taxes. This is why I believe the equity line might make more sense than conventional financing.

Does this sound feasible? Ultimately I would like to continue this cycle over and over again. Thoughts?