Hi, currently I'm working in Thailand and when I get back to CA, this is what I intend to do for my real estate investing. I'm not very sure if this will work or not in real estate investing but I'll give it a shot.
Example: I bought a piece of property with 80% mortgage and 20% down and this property cost 100K with positive cashflow every month.
After 2-3 years, if property appreciates to 120K, I now have 20K free equilty. I will take a home equilty loan of 20K to down another property for cashflow. I now have 2 monthly cashflow coming in every month.
After another 2-3 years, I now have 2 pieces of properties that appreciate, I can again do a home loan equilty from the 2 properties I owned to down for another bigger property with more cashflow.
Is this the way it works?






