Strategy to scale more units

[John Olsen]

Hello everyone, 

I purchased my first duplex 6 months ago. I live in 1 unit and rent the other. After PITI and all expenses I typically only pay $100 per month out of pocket total. I put 5% down and have a mortgage balance of $160,000 remaining. Conventional loan at 4.5% interest.

I have have an opportunity to purchase another duplex that i'm estimating will net $700 per mo. after PITI and all expenses. I only have $10,000 in the bank and want to purchase this second property. It's valued at $160,000 so my only option (that I see) is to put 5% down conventional loan.

My goal is to own a 6-10 unit apartment building in next 3 years. I'm don't know how i'll get there because if I continue only putting 5% down on my units I can't do cash out refinancing to put towards the 6-10 unit apartment building. Do I continue saving money instead of purchasing more duplexes for 5% down, do I use HELOC since I can't do Cash out refinance (if it's even an option), do I have to sell the duplexes to get my equity money for apartment building? My biggest question is how or when do I liquidate. Do I just have to sit back a few years until more equity is in homes, etc.