Portfolio Scaling

You scale a portfolio through equity extraction and strict debt management, not savings.

The Extraction Mechanic

As a property grows in value and the principal is paid down, equity is created. This equity can be accessed via a cash-out refinance or a line of credit to fund the deposit for the next asset.

However, extracting equity increases debt. You must constantly monitor your DSCR across the entire portfolio. If DSCR drops below 1.25x, you are scaling risk, not wealth.