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Some people think it is less risky to buy with cash than with a loan, but I would also disagree. Here are some reasons why cash may be more risky than getting a loan. When you buy with cash you have less properties.
The fewer properties you have, the less sources of income you will have coming in, and the more a loss of an income will hurt. If you have 1 property paid for with cash, it really hurts when it goes vacant. That is your only source of income from rentals. But if you have three rentals that have loans on them, one may go vacant, but you have two more that are bringing in money.
When you have multiple rentals, you also have more diversification. If you happen to have one rental, you are more susceptible to neighborhood changes, storm damage etc. With multiple rentals you have less of a chance of all your properties being damaged or hurt by other factors.