When working with investment property there is no short answer because just like every investment whether it is real estate, stocks or anything else it must be evaluated on it's own.
Your plans for the property will determine what kind of a down payment will net you the highest return on your initial investment. Will you rehab and sell, or rent and sell in 2,4,7 years? If you would like to discuss this further contact me at ajb@trianglelendinggroup.com.

Congratulations Jennifer! What a great situation! I used to be a corporate financial analyst and I have also prepared taxes for a living. You do not want to sink all your eggs in one basket. you also want to take advantage of the interest expense deduction on your taxes for your rental property. ( I am assuming you are buying to rent...). The interest, property taxes, repairs and depreciation can all be deducted to reduce any income you receive on the property so you do not have to pay taxes on the rental income. Then I would suggest you use some of the cash to invest in a ROTH IRA and make sure you max out your 401K if your company matches. But a good financial advisor can steer you in the right direction when making that decision. Good luck and if you have any other questions, please contact me at lindamorris@ysuhomes.com.

Hi Jennifer,
So much of the answer is based on your situation, I would also reccomend speaking with a financial advisor or at the very least a loan specialist and see what they can offer, it may make more sense to use the cash in another investment while using the rent to pay for your investment property or possibly purchase more than one. If you contact me via my website I will be happy to get answers to any questions you might have. Thanks, Michael

Hi Jennifer

I agree with the previous answers. You should consult w/ a financial advisor. He/she will be able to let you know if this option is the most suitable for your short/long term goals.
Once you have this information you'll be better positioned to make an offer.
I have one that I could recommend if necessary.

It's great to hear that you've saved enough money to endeavor into this project. Good for you and happy hunting!
Regards,
Lizete

Jennifer, please consult with a mortgage specialist and a finicial planner before making this decision. There are many factors to consider, and you want to make the right decision. Good Luck.

The short answer is that there would be few if any reasons why you would want to buy property and pay all cash. If you took the same amount of money and leveraged it you could buy multiple properties instead of just one, or have money available for other investments. (Assuming you've run the numbers and all of the calculations support your goals for return, cash on hand, etc)

To really know the answer Jennifer I'd need to know what your goals are. What are you attempting to accomplish by purchasing property? Are you looking to sell the property in 2 years or 20? Are you intending to rent it? Lease/option? If you clarify the goal it will be easier to provide a meaningful response...

Usually one would pay cash to have a quick close and reduce or eliminate closing costs. But, you would be wise to seek a financial advisor to provide all the details to better serve your particular situation. If you plan to flip, I would put 20% and keep your cash to do repairs. Again, depends on what your situation is and what you plan to do with the property. Good luck with your decision.

Jennifer,
There are plusses and minuses to using cash.
You can leverage cash to hold more properties. As a Realtor, that is where I make more money, when you buy more properties.
But this is about YOU! Not ME!

I like cash. Cash IS king.
You can buy great cash flow from an investment property by having little or no debt. Little or no debt is not a bad position, as far as I am concerned.

Both approaches have their supporters and detractors.
You should discuss this topic with a trusted financial advisor who knows your personal circumstances, goals, and risk tolerances.
If you are in a position to make a large downpayment, or cash purpose, I suggest you first connect with a skilled financial planner whom you will pay a flat rate, who is not selling any investment vehicles, and form an overall long-term wealth management plan.
See how real estate investment fits into that plan.

Good Luck!

Based on your short/long term goals. I recommend confer with real estate CPA or financial planner who can review your entire business plan. You might be able to take extra cash apply towards other investments, than placing all your money in one location.
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Keep your cash...Do you sleep better at night with $100,000 in the bank, or would you sleep better owning a $100,000 home? If you plan to flip the home, I would recommend applying the 20% down and keep your cash for necessary repairs that may come up if you do any renovations, especially if you plan on renting the property out...Cash is KING....