How to grow when rental costs $60k each time

[William S.]

I’m in a market where I can buy a fixer for $85k or so but needs anywhere from $35k-$50k in rehab. Basically I’m all in for $60k...

$60k = $450/m cash flow (Mortgage, Taxes, Insurance, PM) 

* I know there’s maintenance costs but leaving it out just for this example. I’d end up around $200/m...

$60k...That’s a lot of cash that I need each time...

This area is desireable and has very little competition so I like that. It also has nice modest appreciation.

I know some may say to BRRRR but the net cash flow is $0/m if I get close to taking my cash out. I'm also a conservative investor. I like leverage but there's a point with me. I also don't want a lot of homes. I don't want to wait until the 30 year loan is up to collect cash flow...

I have 1 rental in this area and it’s done very well. I want to keep buying but the numbers are not as favorable. It’d take me 3 years to save up $60k too.

Does this market make sense anymore for rentals? How do build up cash for down payment/rehab money?

I know when I get to 5 rentals things will snowball, but in the beginning it’s tough to get the ball rolling...

I’m not interested in lower end rentals. It won’t work out in the long run. Too many problems in those areas.

My plan was to buy 3 in this area. Higher rental rates, good area, nice appreciation. After 3, take the funds and purchase strictly cash flow rentals or buy dividend stocks. However $60k is A LOT for me. Any suggestions on how to reach 5 in a more efficient way?