Cash Flow/Tax Question

[Sylvia Steinheiser]

I am new here and just starting the process of learning about how best to invest. I plan to buy 20 properties over the next 9-10 years to be used for retirement cash flow. I anticipate having the funds to buy 2-3 SFH's per year during that timeframe and was originally not anticipating financing them.

I anticipate that each house will net about 1000 per month in cash flow assuming no mortgage payment.  My issue is that I do not want any additional taxable income for the next 9-10 years before I retire.  I am thinking that the only was to avoid the income is by financing these properties and using the rents to pay down the mortgages.  I believe they would still be cash flow positive with a 15 year mortgage if I put around 25 percent down.

Does this sound right?  Would you recommend this approach?  Any other options to limit having taxable income?

Thanks in advance for any insights you may have.