I want to decrease leverage as I age and increase passive income.Regarding point 3...it really depends.

In response, I would say that if rates were at say 6-8 percent, the principal value of the house would decrease significantly.

If you buy the property cheaply enough, your cost of borrowing decreases, so maybe you should be looking at distressed multi-family properties instead of what's on the MLS and paying market value.

You either pay now or pay later- and honestly I go against the norm and would rather pay now - how often do you see taxes Decrease for those making good money.

It seems if all costs associated with closing this deal were 4K, then we would save $1,200 up front, but our cash flow would decrease by approximately $20 a month.  

Raleigh only saw a 15-20% decrease (average) some worse, some better during the recession.

The problem I found with financing 100% is that it decreases your cash flow.

Decrease your credit line to $1000 or $2000.

Truth is I had enough expenses to wipe out a large portion of that commission and I wanted to put some $$$ into rehabbing one of the units for a tenant that had let me know he was going to be moving out in 2 months.Fast Forward 1 year:I have increased my net operating income to $53,000 by rehabbing two units, cleaning up the landscaping, getting less expensive insurance, decreasing mowing/plowing costs, and increasing rents.

The freedom to do what you please in your own residence and the decrease in stress can be worth the financial tradeoffs.