Interest Only Loans: Pros & Cons

[Kyle Pettit]

Hi Folks, I'm fairly new to RE investing and wanted some input on using interest only mortgages/loans. I currently have 3 properties under contract. Two of the properties I plan to sell within 1-3 years. The third is a duplex unit that will cash flow nicely so I will likely hold that property longer. I'm contemplating doing interest only mortgages on the other two properties to maximize cash flow and stock pile some capital for my next purchase. Are there any downsides to this strategy that I may not be aware of?

Thanks!