How to build a rental empire?

[John Stark]

Hello everyone!

This is my second post. Brand new investor here looking to purchase my first property soon.

Ignoring the fix & flip side of things, and just talking about buying homes and renting them out, is the general idea to buy a property, rent it out for positive cash flow (after PITI & expenses) and using that cash flow to help with the down payment on a second property and using the 1st house as collateral for the second loan?

So each previous property is collateral for the next? Just curious how lenders look at that. Obviously, speaking personally, I wouldn't qualify for say, 3 mortgages if I were going to live in them, but if I have 3 homes and rent each of them out with positive cash flow and positive equity, I would most likely qualify for a 4th loan, a 5th loan, etc.? rinse and repeat?