Potential Tools in a toolbox from a paid off rental?

[Joe M.]

2 part question.

So I am currently saving up for another rental.  It dawned on me, it wouldnt take that much longer to save and completely pay off my one rental I have now.  Potentially wondering if this gives me anymore tools in the toolbox. 

1. What would be some pros and cons of doing this instead of just saving 20% and buying another rental?  I understand the leverage benefit, but also the peace of mind with a paid off rental. Anything else I am missing from that debate?

2. If I did decide to pay it off, how would I turn that into another rental?  How exactly do investors use this to their advantage?

Thanks