That is one of the principal benefits of owning real estate that is completely ignored by a simplistic 50% rule of thumb analysis that is prevalent on the forums.

In simplistic terms, would you rather have 2 properties that you brought in cash with the $400k or would you rather have 10 properties with that same $400k by using conventional lending?

It sounds simplistic, but when you truly decide, you take immediate action and start taking action toward that decision.

I know there will be a plethora of examples, opinions, exceptions and objections to the vagueness, but this is purely for a simplistic model and I am curious to see if there is some correlation. 

I was far too simplistic in my question, I understand the exposure if you can't sell before the principal kicks in or if appreciation stalls but if rates jump they can readjust the rate inside the IO period?!  

You could also add other metrics but that one would be the simplist I believe.

You have several heavy weights in this thread giving much better advice than I could probably ever hope to.However I have a very simplistic mindset and sometimes look at things different and maybe my thoughts will strike a chord.- Always plan for the S*** Hits the fan scenario- What happens if the owner dies?

I know that probably sounds simplistic, but it does talk about more than that, as important as that is itself.

I have read almost all of the books by all of the gurus and find that his is more simplistic and easy to understand.

Please don't listen to the simplistic answers of "you will make more with appreciation" That is a possibility, perhaps even a strong possibility but it is not guaranteed.