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.