Cash or bank finance a short sale rental

[Douglas Ellis]

I currently own two SFD rental properties, and looking at a third (short sale), that i intend to hold for at least five years. My basic question is with the closing costs and lender fees (approx 6k) would it be better to use approx 1/3 of my cash reserves for a cash purchase than to finance thru the bank? Estimating a 8% rate of return. Thanks in advance!