How do regular people afford to pay cash for their investment properties? I suppose this question would also apply for primary residence.

&amp;#x200B;

Even with a good but not incredibly high income, say $100k, and say the take home is $75k after taxes, I don't see how people can afford an investment property with cash. After BS3, we should be enjoying our lives a little while also contributing to retirement and our kids college funds, and of course other sinking funds (new car etc). But after retirement contribution (15% of net just for simplicity sake), we're down to about $63k per year. If we live on $40k, we can save $20k. 

&amp;#x200B;

A cheap property would still run about $200k and would require some renovations to be rented out. Are we just supposed to save for more than 10 years before paying cash for an investment property? Wouldn't property prices be even higher then, and we would need to save for even longer?