I'm sure this has been discussed to some length but keen to hear thoughts on the this as a strategy; - Buy cheap (ish) IP that's cash flow neutral or positive on P&I , yield 4-5% - Use P&I driven equity to finance subsequent properties purchases. - Slowly accumulate properties on this basis, ensuring each purchase is backed by real equity from principal reduction on previous properties. - Sell out at a later date to unlock , time-frame +20 years. Capital gains are not expected but welcome hence P&I approach, the real gain is in having the rent pay down the asset with little commitment week to week from my own pocket.Over time, the property becomes more cash flow positive as the principal reduces and the effective yield increases. This is ofcourse more valid with rates stuck in the gutter and becomes unpalatable (and difficult) at higher mortgage rates. Is this a proven strategy as opposed to pure neg gearing IO capital gains seeking speculation.? I cant see how it can fail if the yield is right and the principal is paid down over time providing there's enough liquid cash in an account to cover occasional vacancy.