Down payment of $230K not a wise investment?

[Lara N.]

I'm debating between two investment scenarios & would appreciate your input!

I'm considering buying an updated older 2/1 house in a hot neighborhood with a permitted 1/1 basement apartment with it's own full kitchen, exterior entrance & washer/dryer. The house is lovely & unique, plus it's taken care of.

I would need to put down $230,000 cash for the down payment due to the mortgage/terms & my portion of the rent (minus roommate payments) would be $700-800 month plus utilities. If I rented out the whole house plus the basement apartment I would net about $300-$400 monthly.

**My 2nd option is to buy a cheaper house which would allow me to keep more of my cash but I would pay a higher monthly mortgage payment.

I'm only working part time now & will be starting a new business soon so I'm leaning more towards having more cash in the bank.

Thoughts on the best investment strategy?