I am paying 20% down so I am planning on potentially refinancing or using some sort of LOC to use as down payment on more properties in the next 1-2 years to grow my portfolio and supplement my W-2 income.

Many ways to invest in real estate but I've found it to be costly to Ready Fire Aim approach to REI.

You should be aiming at getting all your cash back, every time you refi.But sure, if you can get more than 1%/m gross return, and ongoing appreciation, then that's something.

@Jeremy Kloter  equitable interest is a misnomer and something that is taught by those just wanting to get money out of those that think they can sell real estate without proper licensing.. just go and ask the state if what your doing is legal.. you will find it is not..you just need to close on what you aim at and resell.I funded one of the larger turn key operations I Orlando for a few years and they bought a ton of property from Altura which was a very big wholesaling operation but those boys were licensed as they knew they needed to be.. of course wholesaling in FLA these days is pretty tough..

I do not have much to add as to the specific conditions for the FHA loan you will be aiming for.

AND, I almost forgot, after the reno he helped market the unit and get a rent figure higher than I was aiming for.

I was brought into the REI game by other collegues who have advised me there really aren't any "no go" areas it just depends on what strategy your aiming for.

@Kyle R. there are better loan terms out there for apartments...25-30 year amortization, lower interest rates, non-recourse, assumable, supplement loan features, interest only periods, etc.Good luck and keep us posted.

Our goals for real estate investing are to slowly supplement and eventually replace our income to one day achieve financial freedom.

(am I aiming too low/high??)