This would also allow me to keep my primary at a low rate loan. 

The only people who succeed at birddogging are the ones who learn everything they can and know it's going to be a low-paid slog so they do the work hard and one day it changes because you have earned more.

It is not a strategy that I particularly like, especially when you are low on cash.

Why pay off a low rate interest.

Look for properties with low taxes, separate utilities, strong demand, and potential for rent increases.

In multifamily here in Reno, NV (just over the hill), we have seen some great deals with higher cap rates for buyers, but also very low cap rates on some renovated, turn key inventory. 

The net result is basically the same, but it keeps the two properties separate from a lenders perspective.Any low down payment money, particularly on an investment property, is going to come from a private money lender.  

They are inexpensive, they usually come with mineral rights (big plus in Texas), they typically have short redemption periods, low rehab costs, and sell quickly at the right price; they also have large ROI. 

@Nate Jenks - @Andrew Postell did a great job clarifying the big challenge you'd run into pulling cash out with such a low down payment. 

If there were a bulk subscription I could get all my tenants for a low annual or monthly cost I would consider it though