Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

When can you use existing real estate as collateral to buy more?
You put 20% down and already owe the 80% or $80k, so you don't have the ability to borrow $100k or even $20k for that matter. As LittleAdv stated, the banks have really tightened their lending criteria. Borrowing out more than 80% carries a high premium if you can get it at all.  In your example, you want the property to increase in value by at least 10% to borrow $10K.