Got a friend who has been doing this for a while, he now owns 2 houses and is working towards the 3rd one. He said he learned this trick from an investment seminar.
The idea roughly goes like this:
1. buy a house for $AA (don't buy units, townhouse or duplex is ok but not as good as house with own land)
2. spend $BB (20K - 30K) to put in a cheap new kitchen, carpet, and paint the whole house, do some landscaping yourself
3. find a tenant through agents, have extra income of $CC per year
4. wait for a few years, get a professional evaluation done
5. with extra rental income + appreciated value of property+land, borrow the increased value from bank
6. use the borrowed money to buy next house
Do you see any issue/problem with this?
Cheers
Allan
http://building-our-first-house.blogspot.com/