Inaddition, we will spend $4,000 on minor repairs and improvements to satisfy thestandard of 10% appreciation during the first year.Year OneHere is a summary of our portfolio after year one:Our loan is for $63,500 (approximately).Our value is at $110,000 (10% appreciation during year one).Our cash flow saved (from cash flow) is $10,000.

So if the delta on your savings versus interest costs is only 2%, and it appears you're a RE professional, your tax advantages will probably make that a wash meaning there's no advantage at all to spending all your cash unless you are just afraid of making a payment. 

If you acquired more property value, you can start an additional depreciation schedule or created a blended schedule. 

Spend more than 500 hours on the short-term rental business.Do substantially everything for the short-term rental business.Spend more than 100 hours on the activity, with no other individual surpassing your time commitment.Engage in a significant participation activity for more than 100 hours, with your combined activity in all significant participation activities exceeding 500 hours.Participate in the business for five of the previous 10 taxable years.Engage in a personal service activity (non income-producing) for three of the previous taxable years.Demonstrate regular, continuous, and provable participation in the business for more than 100 hours.If these benchmarks are met then your income would no longer be considered passive but active and any losses could then be used to offset other active income ...

Thank you, I will share the spreadsheets I have run for this for some additional advice.  

So if you spend all of the money you'll avoid any taxable boot.Any money you have left over after your purchases will be taxable boot.

Would the additional cash freed up by a lower down payment provide significant opportunities for other investments?

In addition to STR'ing the main house, he is building 2 more units (ADUs) on the back side of the property.

Additionally, the overall market situation matters, including the vacancy rate, rent trends, and property values.

In addition to no state income taxes and pro-business government, the cost of electricity is relatively low.