Financing for a single family house, what do you recommend?

[Jason Smith]

I am looking at a single family house for my first investment property, the asking price is 29900 and I am sure I can get the property at 20k. The home needs a roof and siding replaced to make it look presentable, the inside has already been inspected and approved for tenancy. I have 16k cash on hand, how would it best suit me to proceed with the financing to benefit cash flow and taxes? The property is rented for 600 a month and the utilities are paid by the tenant. I would like to purchase more in the near future, what strategies should I use?