Income Tax implications:
Deductibility of interest on a principal residence or a rental property is for acquisition debt. If you purchase all cash, the maximum loan amount for which you can deduct the interest is $100K. SO, most of your interest debt is not deductible in the scenario you described.
Why not make an offer based on NO loan contingencies and no appraisal contingencies. That’s effectively the same as cash. Also, demonstrate that you have the cash reserves to purchase outright. If I am a seller and I get that kind of offer, I would assume the buyer could perform.
