How much cash?

[Eric D.]

What are your thoughts about how much cash to put down on an investment property? I have heard some say you should only put down enough to get a mortgage for the rest, i.e. like 20%, while I believe others say you should only invest all cash so you do not owe any money on the property? With the former, you can get a bigger property or else risk less of your own money. With the latter, you are increasing your cash flow, but with an outlay of a lot of money.

[Furthermore, I live in New Jersey, and the numbers do not work to provide a cash flow if you finance 80% of a property, because housing prices and taxes are so high. So I assume the answer may be different for states like mine]

What are your thoughts?