Has Anyone Used the “Snowball Effect” to Scale Their Portfolio?

Hey everyone,

I’ve been thinking a lot about how seasoned investors keep growing without waiting years to save up fresh capital. One strategy I’ve noticed is refinancing — pulling equity out of an existing property and rolling it into the next deal.

It’s kind of like a snowball: the first deal is small, but each refinance adds more “snow,” making the next deal (or two) possible. Over time, the momentum can build much faster than just relying on active savings.

I’m curious — have any of you used this approach to grow? What were the biggest benefits and what challenges did you face along the way?

Looking forward to hearing how others have leveraged this strategy.