My spouse and I have identified a property (technically two properties) that will be our first investment properties and we'd love an experienced investor to look over the deal and let us know if we're looking at everything properly. These are two properties located next door to each other being sold as a package deal. They are both single family homes, 2 bed 1 bath.

Property 1:
Original asking price: $117k
Current asking price: $110k

Property 2:
Original asking price: $108k
Current asking price: $100k

The seller is wanting to sell these properties to he can buy a piece of land.

Both properties are in very good condition, one has just been renovated. The renovated unit does not currently have a tenant. The other unit has a tenant that has been there for a couple of years, currently paying $700/month. She understands when the property sells her rent will be raised.

We ran the numbers and we decided we needed the properties for a combined price of $150k in order to make it work. We thought there was no way the seller would take that, but we put the offer in. Surprisingly, he countered with $160k. We walked away. We legit needed $150k to make it work. The next day he called back and said he'd take $150k for both properties if sold as-is. Of course, our offer will be pending an inspection, understanding that we will either walk away or be responsible for any findings revealed in the inspection.

Rentometer says the median rent for these properties are $850 and $900, which is what we'd go for.

FWIW, Zillow says these properties are valued at $110k $100k respectively.

Now for financing.

We both have credit scores between 780 and 800.

We have right at $200k in equity in our primary residence. Our strategy is to pull out $160k in a HELOC and pay cash for the properties. We'd use the "extra" $10k for closing costs (although we could use savings for that). The recently renovated unit will need a refrigerator and stove. And, of course, anything significant that the home inspection uncovers.

Once we close on the property, our plan would be to then put a 30 year mortgage on the property and use that to pay back the HELOC. So this would put us into the properties with $0 out of pocket and have properties with instant $60k in equity.

Are we overlooking anything. Is this a sound plan?

One other thought we had was to make interest-only payments on the HELOC for up to 6 months to see if mortgage rates come down a bit before locking in the 30 year mortgage on the properties.

Any advice or input is VERY much appreciated. We've read books, read blogs, and watched tons of YouTube videos, but we're still newbies at this and would love to hear from experienced people like you!