That one pot of money can be replenished or reimbursed with a Fannie Mae cash out refinance once you have been on title for 6 months or more.

If you fall below it, you put 100% of cash flow towards replenishing it, if it's intact, you leave it be, and continue saving for the next property.

Now the supply of deals is replenished constantly through equity being paid down, inheritances, etc. but if the demand surpasses the supply, you will run out of deals.Let's say there's a lake out behind your house that is full of fish.

After closing, you could replenish your $80k to your account and have that same $80k or so to put in a multi family.

When I need to use the $2k, I will replenish the account with my $250/mo.

We now cash flow more than enough to pay our bills, put the appropriate amount in reserve for each property and even to replenish our savings.

that the towns would do what it had to do (beach replenishment, etc.) to prevent it from happening. 

When I replenish my "play $$", I would look into it again but be a lot more conservative (such as selling covered calls etc) 

If I also assume that I want to have the option of living off of my rental property's cash flow, then it's also important that the expenses incurred over the years do not eventually deplete my cash reserves, which, at some indeterminate point in the future, will only be replenished by the amount of cap ex that I allot from each property's monthly income.

I plan to refinance the last house I bought with HELOC money, to replenish the fund.