Doug, I was in this situation 6 months ago.

I plan to make 25% down on this home.

This leads to issues with refinancing and could leave you with less equity or higher debt than anticipated.

(this helps expands your geographic targets if you don't have to manage), etc. 

All that to say that there are alot of risks where you can have a hard time keeping your business (hard to move laundry appliances and utilities) and its a maturing market so there are fewer buildings being built without laundry included anymore.

This is my first flip and I'm using a heloc on my own primary to fund the project.  

Purchase price: $250,000 Cash invested: $250,000 Sale price: $420,000 2bd/1.5ba townhome What made you interested in investing in this type of deal?

This article will help provide some insight into that question.First, it is crucial to understand that the real estate market and the stock market are two different markets.

DISCLAIMER: I am not an attorney and this is not legal advice!

Is this how you purchased your other rental?