Does it make sense to use equity from a rental house to purchase more rental property.

[Raj Vajir]

I have listened to several podcasts that recommend using equity to purchase more rental properties.  I have about $100k+ in equity.  Whats the best approach in utilizing the money to purchase several properties.  Does it make sense to get equity loan on the entire amount or is it possible to get $25K at a time as I purchase one property and then next or is that not possible?  Sorry for the confusing question.

[George Maka]

@Raj Vajir It makes sense if the numbers work for you. If you can use your equity to purchase a rental and the rental makes enough to pay your equity payments, expenses and cash flow whatever you are looking for, then I think it would make sense. 

Thanks,

George Makakaufaki