Home equity or cash?

[Jacob Stahl]

What would be a better option for the 20% down payment on a commercial property - using all cash or taking out a home equity loan or partial of each?

Using all cash would hurt my reserves, but would be able to cash flow better on the deal. Using a home equity loan would obviously save my cash reserves, but limit my cash flow to pay both the commercial loan and the home equity loan back.

[Henry Clark]

@Jacob Stahl

Also match your finance method to your investment time horizon. Don't do an ARM with a long term investment. If your doing a fix and flip, maybe an ARM