Pay cash for a House, or finance a percentage and invest the balance ??

I would like to get feedback with regards to paying cash for a home in todays market. Specifically Dallas or Austin, TX. Does it makes sense to pay cash for a home today and take the balance and invest that. I have heard numerous schools of thought: interest rates are low/you'll need the deductible interest your home provides/you can't borrow money this cheap/if you have your house paid for you, you are set for life. I am confused at this point and tend to be leaning toward putting 50% or more down and financing at 10 years fixed. I tend to subscribe to Debt is Dumb school of thought.

If you have the cash and available credit, buy one home with the cash and put your availble credit towards a rental property, which will eventually pay for itself. Just a thought. :)

Todd, Revolving credit card debt is bad, but a mortgage isn't the same. There's no reason to stop your money from working for you. If you tie up all of your investment money into a single home your money will be worth whatever your home is worth. Are you retired, do you take risks, how long til your retire, how much money are you investing?

Personal Example: My Dad's 72 has tons invested and still carries a mortgage on his home. Why? Tax benefit and his money is working great in the market for him, even in retirement. He is diversified and has made a killing with Google and Apple and many other stocks recently (last four years or so). There is no way to replace excellent growth in stocks, stability of bonds and other financial annuities. Talk to a licensed investment professional. I have a few in California if you would like a personal referral. Simply write an email and I'll pass along a name and number for you.