How do you scale this?

[Mike Basden]

Hi all, 

I'm new here so please excuse me. I'm sure this may have been asked before but I'm having trouble finding the references. 

I currently own a side-by-side triplex income property in the Toronto area. It has good cash flow and should have great appreciation as well thanks to the local market. 

I'm on the look out for another property but I'll have to finance the downpayment from a LOC. It hurts the cash flow financing this way that's fine for property #2. My question is, how can I go about securing #3 afterwards? My home's equity will be pretty maxed out at that point and the equity build in the rentals won't be enough to leverage for another down payment. Is there a better way to finance #2 to set up buying #3 (or 4, 5, 6 ...37?)

I'm trying to figure out how to scale this and I'm running out of ideas. The 'cheap' houses around the Toronto market go for around $400-500k. Am I better off to stop scaling buy and hold and try something like flipping houses bought off tender to get another lump sum for a downpayment and lessen the leverage? 

Any advise (particularly those with a Canadian perspective) is welcome.

Thanks all,

Mike