I'm TERRIFIED to over-leverage

[Jordan Coates]

I'm worried about over-leveraging myself on my properties. My wife and I have our primary residence and a rental property (that we have owned for about 4 months). I'm thinking about using $20K of the $80k equity in my primary residence to buy another buy and hold SFR rental. I'm also about 2 months away from being able to use the equity of our current rental house for a down payment on another SFR rental.

My wife and I make enough from our W-2 employment to make the mortgage payments if the rentals go vacant.  What are the dangers of using the equity for down payments on other properties? Can we just keep doing this?