How much cash do you leave behind?

[Gregory D Coburn]

I have a property under contract and a bank lined up to give me up to 85% of the appraised value.  I anticipate a good appraisal based on comps in the area, so i would be in a position where i could get back all the money i have invested in the property + some. However, i am curious on your thoughts on whether or not to pull the Max out 85% vs a lower amount.  

House will rent for 1550

Scenario 1: Pull 85% out, This would leave me with $8,700 cash in my pocket - Mortgage +T+I+HOA = $1,276.

Scenario 2: Pull 80% out, I am left with $506 in my pocket - mortgage of $1,223

The house is on the newer side so repairs should be moderate, and I plan to property manage it myself for now, but will build that into the equations since i want to eventually get out of Property management.  

The area is growing and I anticipate rents going up as well as house prices, i don't want to bet on this but it does give me some comfort that equity will increase over the next few years.  

My hesitation on doing the 85% is that it would expose me to more risk if the market drops, San Antonio is somewhat insulated from this based on the last market drop.  That being said $8700 rolled into my next property would go a long way.  

[JD Martin]

Based on what you posted, if you are going to pull cash out there's no point in leaving $8k behind for a $50/month mortgage savings. If the market tanks bad enough the extra $50 isn't going to matter.