...only if they have a really strong foundation.
Guideline #21: Pyramiding, or using the equity in one property
to buy another property, is not to be undertaken lightly.
As with leverage (see Guideline #20), pyramiding can be your
friend, or your enemy.
With a strong foundation (well maintained properties with strong
tenants, ample cash flow with reserves on hand, and a respectable
amount of equity), a pyramid will build solid wealth.
With a weak foundation (poorly maintained properties with
transitional tenants, with little or no reserves), pyramiding
resembles a house of cards- soon to be tumbling down.