Help with my assumption loan

[Scott Po]

I'm assuming a VA loan on a $407,500 property. The original mortgage was for 340k. I have 77k in cash that I can use to bridge the gap. The mortgage would be at 2.7%.

The property is a brick 2200 sq ft 5bed/2 bath from the 1950s. 

My question is would it be better to leverage the 67500, retaining as much cash as possible (bringing my bill per month to approximately 2600)? This would include the mortgage, second loan, and expenses. Or would it be better to pay it outright, depleting my savings, but getting a property that actually cash flows in todays market? If I paid outright I would be looking at 1700 monthly expense.

All of these figures are worst case scenario (no tenants, I'm the only one living there). The plan is to have tenants but I'm planning worse case scenario. 

Thank you very much for your opinions. 

[Nathan Grabau]

Quote from @Scott Po:

Quote from @Eliott Elias:

Do not assume the loan if this is an investment property. Take it over subject to. 

 why?

 If you can do subto, it keeps it off your credit. That being said if you can assume a 2.7% loan and it is smooth, the advantages of subto are not as extreme. 

With regards to your original question, I would prefer to hold onto the cash. Everyone likes to see cashflow as their front line of defense, but in my mind, cash is the true first line of defense. A/C and hot water heater goes out and you have a 5000 bill, I would rather have 70k than a 800/ month lower payment. 

The 800 is a pretty big swing though, typically when people are talking about 70k it is for a sub 500 monthly payment swing, so that is the only thing that creates a gray zone for me in your specific example.