However, owning real estate does not come without risks. If you purchase three rental properties, you'll be increasing your indebtedness substantially. Odds are, the rental you recently sold had positive cash flow and provided you with monthly income. If you take out three large mortgages, you may find the monthly mortgage payments equal the rents you'll charge, essentially eliminating any current income to you. The more rentals you own, the more money you need to have set aside for expenses.
Homes require maintenance such as roofs, carpets, water heaters, etc.
If all three homes require repairs at the same time, you'll need to come up with the cash to pay for them. In addition to repairs, each home will have its own property taxes and insurance. You'll need to make sure you have the money for those expenses as well. Furthermore, you'll have three tenants to deal with. You'll need to be prepared for times when you have no tenants at all or, worse yet, a tenant that requires eviction.