And this will allow you to use that same HELOC for the next one -- recycling is good for the environment, right?

The Real Estate Cycle has different Drivers and range of indicators. depends what are you looking for...I have a great eBook i can share with you about the RE Cycle, PM if you like....The #1 indicator to identify the health of the market is the time it takes to sell a property. 

It is also hard to maintain a house in a bad area as the locals will recycle everything you have in the house quickly.  

But that $55k can be recycled 20-30 times 

Brandon Turner calls this the LAPS funnel, get some Leads coming in, Analyze those leads, Pursue those leads, and you'll reach Success.I'd consider the BRRRR strategy as well, this would accomplish your desires to fix and rehab rental properties, obtain long term rentals, and recycle the same cash/lender on deals moving forward.

This strategy would accomplish your current goal of obtaining LTR properties and also being able to recycle your cash indefinitely(at least, that's the goal of a successful BRRRR).

Oil recyclers are fairly common and pay you for it.

During that time I will recycle the cash flow into the next property.

Totally understand the delayed financing option as it allows your purchase money to be pulled out immediately and recycled.

I feel as though most investors are recycling their income into principal and expenses, or building a reserve for that "Ugh oh" moment, with the idea of retirement in the forefront.