I think paying off a loan with a high interest rate debt and adding to the principal is one way to stay liquid within the property. 

If you don't have a good foundation(bad debt paid off, $$ saved up) I would first focus on that.

The Greek government debt crisis.

Most investor utilize short term hard money debt to scale their flipping operations where the lender will fund 80+% of the purchase price and the rehab budget which can allow investors to work on multiple projects at once.

Since you're not even sure if you want to be a landlord then take the bulk of the money and pay off any debt. 

Eliminate debt, establish a budget, and save.

Ideally completing light renovations like this shouldn't take long and you should  have a low holding cost on the hard money loan (if you used debt) and make a higher profit on the sale or have more flexibility on the payoff when you refinance  Plan on long-term and hold.

AAA is there debt on the existing property?

When an IRA borrows funds it can lead to a tax called UDFI (Unrelated Debt Financed Income Tax).

Thus, your profit margin is lower (than the all-cash offer), but your ROI is higher.Putting more than 20% down might reduce your monthly payment and debt-to-income ratio, but it also ties up more of your capital, limiting flexibility.