Best way to finance First SFR property

[Robert Kretsch]

Hello,

I am just starting to look for my first SFR property in Minneapolis area. My question is best way to finance it. I own some land that I could take a loan out on. ( $120k is max I could get at 6% for 20 years) Would it be better to take the entire amount and pay cash for the property? ( I have been reading that best deals are with Cash) Or, should I take out only what I need for down payment and then get conventional mortgage on the SFR? I am looking for a property somewhere in the $100K range. I am looking for buy and hold property. I have been told that another option might be to buy property with cash and fix it up and then take out Rate and Term Refi for 80% of property value. (would then have to pay back most of the land loan with that refi money)

Either way it looks like I would not have down payment money for buying another rental property after getting the first one.

Thanks