I did that on a small part of my portfolio and I regret it now as it was a painful transaction and interest rates haven't really moved much at all.

However, dealing with tenants seems like a pain and I would much rather focus on building a solid network of like-minded investors and focus on the investment/financial side of things.  

Both are a pain in the butt, but may be a cost-effective option to foray into rehab.

You'll have some growing pains to go through. 

Cash: Cash may seem great, it's real and doesn't bounce, however, it usually means you have to meet your renter in person to collect which can be a pain and it's hard to keep track of.

@Sergio Rodriguez, I feel your pain, finding deals is a complicated, time consuming process.  

Cold call as an unrelated investor and create spreadsheets detailing each leads pain points and motivation level.

Plus I like the fact that the base will be having an infusion of enlisted people over the next couple of years which leaves us with some real opportunity for good tenants.  

You definitely feel my pain then.

@Kevin RzeszutoI feel your pain.