>I think what he's saying is the smart move for investors is to keep the process going (buy property, see appreciation, capture gains upon sale, re-invest gains

>I think what he's saying is the smart move for investors is to keep the process going (buy property, see appreciation, capture gains upon sale, re-invest gains to buy at even higher price point) until it goes bust. By "continuing to pump in capital and re-leverage based on equity", the prices will continue to go higher until they bust. Close, but it's even easier on that. You don't need to sell to extract value from the currently financed properties. Selling incurs transaction fees. You don't want that! Instead, you just use repaid principal/appreciation to lower the cumulative LTV against the entire portfolio of properties. This means if the market in your area is going up 10% yoy and your down payment is 20% to avoid insurance fees, you basically get .5 house downpayments per year off appreciation, before rent. Do that for a few years, and suddenly you own a lot of property.