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Okay, I am definitely new to the real estate investment game, but I do have a game plan. The question to ask is, is it a good plan. Hopefully, someone out there will be able to tell me.

Basically what I want to do is buy one single family rental to see if this landlord thing is up my alley. I thought I would take out a second mortgage on my residence and use some of the money as a down payment on one of the HUD houses listed for bidding on their web site. I would form an LLC to purchase (protect my assets). If that worked well, I could continue buying and financing to draw equity. I do not anticipate this as a monthly income thing, but rather as a way to use a small amount of cash and have the rent pay the mortgage. My gain would be the equity on the back end (either sale or refinance).

Seems to make sense to me, but sometimes what seems to be and what really are can be two very different things. Any thoughts would be very appreciated.
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