How come people don't pay 100% down on "investment homes" ?

[lazyj10]

Investment properties often cannot be used as mortgage deductions, so that shouldn't be equated into this...at least on the federal level.

The mortgage deduction is only useful if you have to have a cash outflow that would generally be considered rent...and therefore, you'd get absolutely nobenefit from it.

 

[airmaxes]

Another reason may be opportunity cost. The money you're throwing down to pay the house 100% could partly be financing another investment that may have ahigher return.