Hi Guys, I have this random thought today while I'm on my way to work. Say for example you have $250k in Cash. 1. You found a property for 250k and bought it under a portfolio loan structure. 2. You than put the whole $250k Cash back into the portfolio loan so you pay no interest, and have a $250k worth of line of credit plus extra cash form rental income. 3. Hold the property for 1 year, for example you receive $300/wk, because you pay no interest on the loan you are now able to put toward surplus funds into the portfolio loan, after 52 weeks you have got yourself an extra $15600 in your loan. 4. Now look for another property roughly the same price, repeat step 1 & 2, basically you have now only used $250k and have acquired asset worth of $500k with credit exposure of $250k. 5. Now because your first portfolio loan has surplus, you can now switch to pay principle and interest, and since it also has income coming through, it is pretty much paying off itself slowly. 6. Repeat previous steps and so on.... So ultimately you have only used $250k to acquire your property empire and over time you will have multiple properties fully paid off earning you crap load of income, and because over time you will slowly pay off your first portfolio loan, you will have surplus income which will help you build your original $250k to $350k and also increase your serviceability. Another good thing is you are not betting on capital gain on each property because you always have this $250k equities plus your slowing building up surplus cash from rental income. This process need at least 10 to 15 years to see the fruit, but it will be a rock solid portfolio that will ride you through waves and storms because though out these years all you have done is take 1 Loan per property and NEVER top up on your loans so you are slowly paying down the money you owe.