Rental net, what to do?

[Michael Thompson]

Hi folks, thanks for all the good content you provide. I recently purchased 3 homes, all for about half what they are worth (3 family members passed away in last 1.5years). I am going to live in one, and am renting the other two. I purchased for about $150k total and the three are valued at around $350k in todays market. Should I use net income to apply towards principal of loan or use equity to purchase more property? Would like to grow to $10k passive income a month but do not want to over extend. This is a side business. Mike

[Patrice Penda]

@Michael Thompson
To ever be able get to $10k a month of passive income, you need to have a lot more properties than the 3 that you currently own.
To ever achieve that ambition, given the 2 options you mentioned, you are only left with using the equity you have to purchase more houses.