Question on what to do with equity

[Jim Keith]

I am going to be buying my first property next April when my lease is up on my current apartment. I will be purchasing a small multi-family property, a duplex or maybe up to a quad. My main questions is once the deal has gone through and ive gone through the tenant screening and have everything rented out. Do I work on paying that property down and using a home equity line of credit for my next property? Or use the profit from the rent to save on the next down payment? My plan is to acquire at east one property a year for 10 years to get the cash flow down and flip homes after five years so that I can quit my job and do this full time. After 10 years I want to invest in larger rental properties. So Hopefully that is enough information without clouding the original question. Thanks everything ahead of time for your input.

[James Wise]

If you are funding your next purchase solely with rental profits you will be waiting a long long time before you can buy the next one. To buy one a year every 10 years you will need to use other income to pay for it.