One property to many properties

[Trung Nghiem]

Been reading this Great website soaking in all the good information that is out there.

I am somewhat puzzled or there seems to be lack of information on how savvy investors grow their business from one income producing property in a short time.
So I pose this scenario, maybe you guys can educate me on how one would grow one property to many?

Real Estate Scenario (ball park numbers for sake of argument)
Investor A bought a 4-plex
Purchased Price $300,000
Down Payment $60,000
Property is managed by property manager

After all said and done, Investor A is able to pocket $450.00 per month (avg. $112/door) Investor A is an conservative investor, he puts away the $450.00 for three whole years, giving him about $16,200 in his bank. Using these numbers and his conservative approach to savings, he would only have around $16000 after 3 years of saving. How would Investor A be able to buy another 4-plex given he spent $300K on his first investment with $60K for down payment.

Investor A can’t assume that he can raise rent in order to pocket more per door. Even after 3 years of paying his loan, he’s probably just been paying the interest on the loan and made very little impact to his principle.
For his investment property, he still has 80% LTV, so Investor A probably is not able to have any equity line available for him to leverage against. Investor A also can't assume that his first property will appreciate enough where he will be able to tap the equity to buy another property.