There is something that I am missing here. The strategy that I propose won't use any debt – at least that's what I'm asking – is it possible? If you have a pile of equity how much of it can you use to "purchase" another property? My strategy involves using as much equity as possible to avoid lending.

Thanks for the reply Greg. Can I take the questions up a notch?

Considering your response, I have considered the following property aquisition strategy and would like to know if it would work how I'm thinking it might. It is different to my previous questions, and mainly aimed at "owning" property for little outlay except for completely paying out/owning the first property. Basically it involves using a very large/all of the available equity in one property to build from, and not being in any debt.

Let's say I own a $300000 property outright. I see a second property valued at $200000 that I would like to purchase. $200000 being well under the 90% or even 80% of using available equity in a $300000 property, can I purchase the second property entirely using $200000 of equity in the first property? There will be no loan, because I haven't borrowed any funds? If so, can I do that with a third property? Say I wish to purchase the third property valued at $100000, and I now "own" the second property valued at $200000. Given that $100000 is well and truly within the 90% or even 80% of the $200000 equity in the second property, can I purchase the third property entirely using the available equity in the second property, and hence have no debt attached to the third property?

And in owning the three properties, there are no debts at all? The rent income from the three is not needed to service any debts?

Sounds a bit to good to be true, so that's why I'm asking

Noone?