Fund strategy: Loan for primary home OR pay off and take out LOC

[Tuan N.]

I believe it's generally better to get as much loan as possible and save cash for opportunities, but in my case, DTI may prevent me from taking out another mortgage, so I'm thinking if I can't secure a loan, I'll pay it off and take out a LOC on it for future opportunities.

Pros: No interest incurred while there is no opportunity and cash doesn't have to just sit in the account.

Cons: Bank may reduce line based on market condition. When market goes South, line may go down and this will be where cash yields it strongest power.

Is there any advantages/disadvantage for this strategy? Should I just try to get as much loan as possible w/ very high down payment if necessary? Any other recommendations for my situation? Thanks.