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How Viable Is My Property Investment Strategy? (Refinancing home to BRRR)

I'm new to the idea of property investing so please excuse my ignorance. I learned of BRRR (Buy, Rehab, Rent, Refinance, and Repeat) through an 'online guru' whose honesty is being questioned so I'm hoping to get advice from real investors.

I bought a run down property for 55k cash which I'm currently living in and renovating. When it's done, it should be worth around 120k but I'm guessing the bank will value it at around 100k. I then plan on mortgaging it and taking out 50k to buy my next property for around 100k. Of that 50k, there will be 20k for the deposit + 20k for renovations + 10k for mortgage repayments for 16 months for both the current house I'm living in and the new property (approx 600pm).

Once that house is complete, I plan on renting it asap for 800pm so both mortgages will be covered with a little extra and then refinancing that new house which should have an increased value of around 200k before repeating the process on more properties.

Does this sound like a good plan? Is there anything I'm not thinking of or anything I should do differently?

Also, is it advisable to use extra funds to make early mortgage repayments or, should I be saving any funds to put into more investments? I'm thinking that over time with inflation, my mortgage will decrease in value so I should be increasing my portfolio and just hope that interest rates won't increase drastically.

submitted by /u/chiko930
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source https://www.reddit.com/r/RealEstate/comments/1ilcsww/how_viable_is_my_property_investment_strategy/
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