"Increasing the velocity of your money" Does this work?

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A while ago I would listen to real estate investing audio books while on long drives required by my profession. One book named " The ABCs of Real estate Investing",part of the Rich Dad series, was one of my favorite to listen to over and over. I like it because it went into depth about the inter workings of taxes and wealth building in general. One thing that stands out to me every time I listen is an example of how to build your money through units. 

The example goes something like this. Buy a 50k property and hold it for 2 years and then borrow out the "appreciation" buy another property and then do the same every 2 years. Then he goes on to say " This is a way of increasing the velocity of your money".

Questions. 

Is this actually possible with only 2 years time?  And wouldn't a property not appreciate enough to borrow it out for another?

Wouldn't it make sense to borrow out the equity? or is that the same thing?

If this works is this common practice for buy and hold investors?

Wouldn't you want to pay off a property? or does it help to keep a loan on it?

Are the banks or lenders ok with this?

This seems like a good idea if the appreciation is enough to keep building with. I would think it wouldn't take long to build a mini empire off of this method. Im still learning how this all works so I would love some feed back.

coo.