refi for down payment. or total cash price?

[Brandon Bitz]

lets say you have $300,000 in trapped equity and want to buy your first rental for $125,000. is it smarter to refi for 50K so you have a down payment plus emergency spending. is it smarter to refi the total 125K and buy cash? are their tax benefits on having 2 loans? you will never get the same interest on the rental home that you have on your personal residence. I feel like I have financing options but don't know what's best. thanks in advance