Need advice - Starting Out

[Michael Swain]

Hey everyone, I am new to BiggerPockets, and need your advice.  

My wife and I have always wanted to own single family residences and rent them out.  Our goal is to one day own 15-20 homes, and live off the income they produce.  We are also trying to get to that goal as financially responsibly as possible.  We are 38, and have 3 children.  We bought our primary home in 2012 for 137k, and the fair market value of that home is now 250k.  We still have around a 10k mortgage on that home (with a 3.125 percent interest).  We have no other debts at all.  We are trying to figure out what our next step should be.  A few options we are considering are:

1. Finish paying off the house (around 4 months), then saving up enough money to pay cash for our first rental (probably 2-3 years), then use the BRRRR method.

2.  Use the current equity in our home (around 240k) and pay cash for possibly 2 homes, then spend a couple years paying off the original mortgage (250k).  

I see drawbacks to each of these options, but what do you all think?  What would you do in my situation?  Also, let me know if you need more information?

Thanks,

Michael

Houston, TX