Is there a wrong road to success in real estate?

[Mark Weinmann]

So long story short i own a 4plex property and i did it with the help of a mentor thankfully. So before and after all I've done is listen, learn and read about REI everyday that my fiancee said i talk about it in my sleep..like seriously having conversations lol

But because I'm learning so much from my mentor, reading and of course BP (god sent) i have so many questions that i seem to get ahead of myself. My mentor gives me information little by little as i go, which is more than fine, but with all the new found information i want to know more. My mentor has owned several properties in CA for the last 20 years, so he knows his stuff and for that i don't question him or his proven method. But i do question if its the best and/or only method for me? He instructs me to purchase my first 4 unit owner occupied (which i have) raise the rents (which i have) and complete maintenance issues (also done), then refinance after a year of owning. Then take a good amount of the equity and go purchase another 4 unit owner-occupied and repeat the same process. He did this same process himself, but he also owns commercial property as well. He hasn't yet explained how he went from residential 4 unit properties to commercial 5+ units and I'm sure he will tell me, but my inquisitive side wants to know how so i can see the light at the end of the financial freedom tunnel. Im just unsure how one achieves financial freedom from just buying 4 units as it would seem all your money is going into buying properties. Can anyone help me understand please? 

[Ron Flatt]

There is no one way.  You have to find what works for you.  

Some people buy one and pay for it and buy the next one.

Some Will buy everytime they have a new down payment.

Some will keep everything mortgaged to close to 70% or greater, using this cash to buy more properties.

It depends on your level of risk.  

My personal choice is to keep everything mortgaged up to a point that rents will cover all expenses, payments, etc @ 80% occupancy.  I consider anything above by 80% to be my profit.  

It will not build as fast as some, but it is also riskier than others prefer.  

The key is what is your risk level, I agree with your mentor that money pulled in a re finance has to be put back into more property, (otherwise you are eating your seed).  You plant your seed, you eat the extra you may have from rents.  

Hope that helps.