Are no income requirement loans foolish??

[Timothy Nelson]

I am looking to buy 4 income properties in Kansas City. I was hoping to purchase 240k worth of homes with 120k financing the remainder. I have no proof of income so I understood the 50% down requirement. However, now I am seeing interest rates as high as 10% (!) and 4k in points too. I am looking for reliable income, was hoping $500/property. These no-income loan parameters seem to defeat income potential, yet to buy two properties with cash does not maximize income potential. What would you do? With just 120k, (even with a credit score of 801), maybe I should just go on a really nice vacation...yeah, right.