Cash vs. Loan

[Jesse Chunn]

I have enough cash to do several all-cash deals. In my area (DFW), sub $80k single family properties are fairly plentiful. My thinking is that I could do several of these deals for cash, and if I get to a point where I run out, I can either sell (for at least a small profit) or get equity loans. Of course the assumption is that I will also have passive income from the existing properties that would cover the loan payments and provide net cash flow on top of at least $200-500 per month each. I have good credit and good income from my "day job".

Question: Is there anything wrong with that approach? What should I watch out for? What are the advantages / disadvantages to this? Is there a better way? I would really appreciate some thoughts and advice.