Is anyone using all interest loans as a strategy?

[John McKee]

I'm trying to retrain my brain on this kind of product compared to the traditional Principal and Interest.  My thought is why wouldn't I do an all interest 10 year loan at 4.99%?  Prepayment penalty is only the first 3 years at a 3,2,1 rate.  My thought is most of your traditional loans are mostly interest in the early years anyway so why not.  This particular property has increased rents every year at 2.5% so that will be the only equity that I am building since I'm not paying down principal.  The increased cash flow is a form of equity I can use/build up to keep on reinvesting.   Thoughts?