How does small positive cashflow turn into real money?

[Tim W.]

So I have been reading and reading about REI and wanting to get into it. Read ABC of Real Estate Investing and now on Cashflow Quadrant, to be followed by BP's UGB. From all the podcasts and all the reading I have done here, I just dont see how people are truly cashing in as small to mid size REIs.

$100/door would put me at 30 units a month just to cover my bills. Im assuming appreciation and cashout can help with some but then you just owe more money and have higher NOI on that property. You can offset that with more properties generating $100-200 cashflow but it seems cyclical. Long term (once your investments are paid off) there is large money to be made but until then...what is everyone doing?

I have a lot (2.5acres) in the DFW area of TX that I bought foreclosed for $90k. I think I can sell it in the $300-350k range. I have had multiple letters wanting to buy but Im not sure if I should cash in now and start with landlording. Honestly would rather get into commercial properties ($1M or so) with NNN and not have to deal with small stuff. Not sure if that would happen or not.

So where does the "now Im making more and Im going to quit my full time job" money come from?