Is this a Tried and trusted method with niche website buying?

Hi WF!

So I was talking to one of my biz friends today and he said this to me:
My proposal is that you buy a niche website that's generating around $500 per month for around $2,000 from flippa.com
Manage the site/market it, increase the traffic and revenue and provide more content for it in the mean time. That's the ONLY investment needed, then in 4 months we (around april) we could buy another website and make $1,000 a month. So by June we have another $2,000 to buy another website, then we're generating $1,500 per month. In July we could buy another one, that's $2,000 per month. So in August we buy another one ($2,500), Septemeber we buy another one ($3,000 /mo), October we buy another one ($3,500), November we buy another one ($4,000 per month) then start saving.

I've read quite a bit about niche marketing, but this method sounds too good to be true. In a year or two, it sounds like you could easily earn 200,000+ from a 2,000 investment.

Is it too good to be true? And what are some things to watch out for with this method?

Thanks in advance!