mortgage advice on vacation rental / investment property

[Andrew D.]

Hi BP folks,

I'm completely new to real estate investing, so I'm still in the process of learning the ropes. I've learned a lot from the forums and podcasts so far, but before I pull the trigger on my first property, I wanted to see if anyone here had any wise words of advice for me.

I have recently found myself lucky enough and in the position to purchase a second home (lakefront property in the range of $500k to $700k) that I'd like to use personally (or make available to family/friends) throughout the year, but also rent it out on a weekly basis when there's demand. I have enough liquidity in my portfolio to buy the most of the houses I'm looking at with cash, but I'm hesitant to wipe out my savings entirely to do so. I also have no other debt to my name at the moment, so I'm just curious if anyone here has thoughts or good articles to point me to on the following questions:

1. What are the main benefits for me in getting a mortgage in my situation vs. paying all cash?

2. If I choose to get a mortgage, how should I think about or determine the best ratio to go with for down payment vs. mortgage? 

Most of the advice I've been reading on here so far is related to solving the opposite challenge (i.e. buying a home with as little to no money down), so I was wondering if my situation is any different or if I should still follow the same principles.

Again, apologies for super basic questions, and thanks in advance for any thoughts or advice you may have!

Andrew