Texan investing in Jersey! Say what?

[Watson Hilaire]

I am in contract to purchase 2 bedroom 1 bath townhouse in Burlington NJ for $20k all cash. This house is about 15 min from my rental in Willingboro NJ. It will rent for $900-1000 a month and needs about $5k to be rent ready. If I had another $40k I would purchase two more. My plan is to milk this cash cow forever, do $40k cash out refi in 6 mouths, use the money to purchase multi family properties. Forgot taxes pluse insurance is $317 a month so will cash flow between $583-$683 ($6,996-$8,196 annually).