My wife and I are fortunate enough to earn enough from our 9-5's to make well above the local median household income, but are not in a position to start purchasing property for cash.

We are self employed and earned about $40K net in 2013.

It will be cheaper in the long run (no interest paid out), and if you save the money, you will earn some interest on your money in the mean time.

Renting a house is a great solution to earn extra money.

My goal is to earn $10,000 per month in positive cash flow(Passive Income) in 5 years time frame.I am a new bee and new to investing in real estate/rental properties.I am looking for strategy/suggestions from all the experts in BP in order to achieve my goal.Some of the ideas, I am exploring are:-Buy 3-4 properties for 35-40k in mid-west, which generate $500-$600 positive cash flow-Use 100k as down payment(25%) and use leverage to buy 1 or 2 properties in high priced areas. 

My ripe old age earns me the right to be, don't you think?

That fact alone means the apt pricing is at its peak right now.

How much income would I like to earn? 

I bought my first property when i was 19  earning $6.00 per hour as a plumbers laborer... get your credit established...  

If not, find the deals, represent the buyer and ask to be in the planning and development stages to learn.Another thought, take yr commission earned and kick it back to the developer, getting that commission, pls perhaps some interest or equity on the backend which the provision that you stay as part of the deal to learn the ropes.