It depends on what the terms of your mortgage are.Pros-with no mortgage, you have higher cash flow.Cons-if you plan on buying more properties, you are better off saving the money for a down payment for your next place.The big questions are: can you get higher than 7% return if you invest that money elsewhere? 

Would I buy the 5 homes with negative cash flow?

Investment Info:Single-family residence buy & hold investment.

I think Collin is being a little tongue in cheek with the Boone's Farm comment.I work with a local, large wine store, wait for their semi-annual sales when they compound discounts and buy 2 cases of each (white & red) for the largest discount.Basically I'm setting out wine that retails for $11-12-13 that I have paid $7-8 a bottle.  

Investment Info:Single-family residence buy & hold investment.

Investment Info:Single-family residence buy & hold investment.

Investment Info:Single-family residence buy & hold investment.

My father and I have formed an LLC with another friend to start buying some rentals.

Most people buy property and then do nothing to educate themselves on how to properly manage.

Thank you.Congratulations on taking the leap toward buying your first duplex and house hacking!