Should you buy a rental property with cash?

[Payton Reid]

I just purchased my primary residence in a new city with cash ($350k) and have another $250k sitting in cash.

Should I buy our first rental unit(s) with cash (after reserving 6-8 months living expenses)? As context, we have no debt of any kind.

I realize interest rates are low but don’t like the idea of taking out a loan if I can avoid it. Also, I realize mortgage interest can be deducted—but so can insurance and taxes which I would still realize.

Just curious on your thoughts. Thanks!