This^^^^^Unless he is loaded with cash reserves and can take a loan out based on his liquid reserves.

Do you get energized by throwing your stack of cash on black and seeing what lady luck has for ya? 

“ cash flow returns” almost always compare horribly to a simple bank CD after you deduct for insurance, prop taxes< vacancy, capex, prop management (or your personal time.) etc etc etc. 

Unlike cash buyers or those with extensive experience in the market, many younger buyers are still navigating the mortgage process while actively house hunting.

The biggest 'danger' I've experienced in the coaching space was coaches who took the cash and wanted me to follow 'their' program rather than coaching me where I am to get where I wanted to go. 

Mostly due to the fact my spouse and I agreed on her to have zero involvment in any sort of RE investing (and its our home) I think once you have a good 6-12 months of reserve cash (operating expenses for your own life saved as a back up incase things go bad) save enough liquidity to get the ball rolling on your first invesment.

Cash offers would net you less.  

A common strategy I see with diversification exchanges, is that the investor will purchase the first property cash and the second with a mortgage.

My plan is to buy the house subject to their existing mortgage, renovate the property, refinance it and pay off their remaining loan balance using the money from the cash out refinance.

Is there debt on the property or are you doing all cash?