Initial Savings Needed to Purchase Multiple Rental Properties?

[Account Closed]

Hello everyone, first, thank you ahead of time for reading this. I am a new REI and have decided to start my new career in long term holding rental properties instead of flipping, in pursuit of the financial freedom aspect of it. I have one very important question that has been on my mind and would like to get cleared up before I jump in with both feet. At the moment, I put aside about 40-60k in start up capital to start this new venture and I am wondering if that is actually enough to make this a viable business that can sustain my life and pay all my bills? I have decided to sell my current company and go full time into REI, but in order to do so, I would need to at least make a minimum of 50k-100k a year.

My main question is this... say for example I am looking to invest in du or triplexes and I found one that I would like to start with that is around 100k and will need 20% down(20k). After running analysis I find out that the cash on cash flow will be around $300 a month. This means that essentially I would need to have 14 properties in order to make enough cash flow to support my lifestyle and pay my bills. I understand that, but what I am having trouble with is the amount of cash needed for the down payment each time you purchase a new property. If I did need 14 then it would mean I would need around 280k in cash. Going with this formula it seems that it would take years before the properties where generating enough cash flow to save and buy another. That is why I am starting to wonder if after the first property am I able to use the equity as the down payment? Also, is it better to just buy larger properties with higher rent instead of multiple properties with lower rent? Before I jump in with both feet I really would like to get a strong understanding of this. Any advice is greatly appreciated. 

P.S. I am also in the process of joining a local REIC, but I wanted to try and get the answer before then if I could. Thanks again. 

[Samantha Klein]

Buy a property and then save, save save. Nothing worth having happens over night, many investors took 7-10 years to build up big portfolios and others have done it in less time, it's all about your income, your willingness to save and your drive to want to succeed. I know it's going to take me around 5-6 years before I have enough units to retire (work less, play more). It becomes a snowball after your first property, you learn the ropes, you save money faster with each new property and before you know it, you are at your goal. I take it day to day because I went through the phase of wanting it right now, you can't think that way because it will consume your mind. P.S I only make 40k a year, it IS possible.