Should I pay cash?

[Bryan .]

I am getting ready to make an offer on a house that needs some rehab. I am planning to keep the unit as my first rental property. House cost = 85K, rehab 20-25K with value after rehab in the 125-130 range. I was planning to pay cash for the house and rehab costs and then refinance, but after reading some of the posts here, it looks like that may be harder than I was anticipating. I may still do that, but was hoping to use the funds for my next deal. Any thoughts?