Would someone mind poking a few holes in my plan?

[Conrad Martin]

Hi BP Community,

My family has a distressed SFH in rural NC that I'm planning to use as a practice ground for my first full renovation. The goal is to renovate the property, raise the value, borrow against the equity, and then reinvest in another property in the area.

I’d like to lay out my strategy here in a few broad strokes and get any input to see if I’m missing anything or should take a different approach.

Steps:

1. Inspect and appraise property

2. Assess work needed and get contractor bids

3. Renovate the property

4. Refinance the property and take out a HELOC

5. Use the HELOC to purchase another distressed property

6. Repeat

Considerations:

1. The first property is a family property that I want to keep it and rent month-to-month when I’m away most of the year

2. The house needs serious work (roof replacement, and asbestos abatement)

3. Aiming to fund renovations with USDA 504 loans and grant as well as saved cash

Where I am currently:

1. Applied for loan

2. Researching inspectors, appraisers, and pest control

Thanks for all of your help. I hope I provided enough information. Lack of detail is simply because I’m so early in the process and I’m trying to be meticulous in my planning