Are my numbers correct?

[Jason Rowlett]

I have a condo that has risen in value and I would like to borrow against the equity to reinvest in other properties:

• Current condo value: $315-325,000 
• Current mortgage balance: $131,000
• Equity line I would like to reinvest: $125,000
  • $100,000 split among 5 properties with 20% down on each
  • $25,000 cash left in a reserve account for repairs/unknowns

My question is, if I put down $20k and borrow $80k to purchase the first rental home wouldn't that knock a dent in my ability to borrow again to purchase a second home with $20k down, borrowing another $80k? And then perpetually with a third, fourth home, and so on?

OR, do I wait to rent out the first, keep my equity cash in reserves and once I have a cash flow from the first rental, use that cash flow as a separate source of income with which to apply for a second loan to purchase a second rental home? (And then repeat with two cash flows to buy a third, and so on)? 

As a side note to factor in...I cash flow about $230/mo on my current rated condo and my day job earns me about $2200/mo.

I hope my question makes sense!