Does it make sense to do all cash?

[John Perry]

I know leverage is the key to making money, but my other goals in buying investment property are:

1) minimize transaction costs
2) being able to close quickly to get preference when buying REO's.

Currently own my house free and clear. Plan to buy several rentals properties over the next year. I have enough cash to buy 2 or 3 properties.

Would it make sense to buy the homes for cash, and finance them later when I need the cash for other transactions? Alternatively, I could pull the cash from my house, and use it to buy several properties. (avoiding all the costs and time associated with having to write 3 separate loans)

The plan is to hold and rent the homes for several years (or longer). Curious what you pros think...stupidest idea ever...or is there some merit?
Thanks