Cash vs Financing on low cost properties?

[Pedro Torres]

Hello everyone, 

I'm looking into buying my first property. Currently I have 25k in cash (with 2k added each month from my 9-5 job) and was looking to buy in the east (Milwaukee, Cleveland, or Detroit areas), because of how inexpensive these properties are. I want to buy and hold. 

The question is, do you think it's financially better to buy a property in cash or use my HELOC (5.5%)?

Here's an example property, something like this is what I'm looking for: 

https://www.zillow.com/homedetails/5524-Maryland-S...

Of course I will fly to Detroit and check out multiple properties while I'm down there. Also take time off of work to organize contractors for the light rehab that needs to be done. Check to see if there are any taxes or other expenses attached to the property before purchasing it. Hire a good property manager. Check the neighborhood (currently according to niche I live in a D+ area and I've been happy for the 2 years I've lived here. 

So I really just want to know is it worth spending my 25k, buying and holding. Then repeating the process by saving up money from my 9-5 and rental income to purchase another house in cash? Maybe this time upping the price to 35k. Then 45k. Then 55k etc. 

What do you all think?