This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

My goal is to acquire 167 rental properties in 5 years generating $500/month on average. 

You’re not alone in that.Let’s break down a couple of things:Your Home: Renting it out could generate cash flow, or selling might give you funds to reset.

My Co-Founder and I have developed a real estate platform that'll generate a Investment Memo.If you're still interested or curious to see what we create, let's chat more, thanks!

I sent a few e-mails to his customer service about this problem.

The goal isn’t to stack a bunch of properties, it’s to generate your cash flow goals with the least number of properties possible!

@Dave GreenHere are the three options for generating passive income and scaling up a property portfolio: selling rentals and buying a multifamily property, paying off your primary residence, or holding rentals and maintaining cash flow.

If someone does the work to generate a meaningful question, I wish there was more respect given to those folks. 

How customized are the buildings?  

Maybe start finding deals to wholesale, which will sharpen your deal evaluation skills and generate cash for future investments.If you find really good eals, you could even require that you participate or get a piece of the deal.