Best Down Payment Source

[Jared Khan]

Hi BP - long story short, my cash is tied up in illiquid assets at the moment. I do however, have full availability on my HELOC, various credit cards that are offering me 0% balance transfer checks for up to 12 months, and various retirement funds (Roth IRA, traditional 401k, etc.)

I'm already a homeowner in SoCal, but I want to buy my first LTR SFR someplace like Cleveland since the price point is attractive. Aiming for conventional and not a DSCR loan due to costs and the higher down payment requirement for the latter.

With that said, I'm curious to hear your take on what the most cost-effective & efficient approach would be to source a down payment. I personally like the credit card balance transfer check route, since it's interest-free for a decent amount of time (aside from an initial 3.00% fee).

[Nicholas L.]

@Jared Khan

hello - I am just going to be very direct.

it doesn't make sense to use expensive money to buy a random property thousands of miles away.  you will most likely just lose money.

to make this work, you'd have to buy something distressed, rehab it, and then refinance so all the short-term funds - HELOC, c/c transfer, etc. - were paid back. this is exceptionally difficult to do. i BRRRR locally and am having a hard time.

you don't want this answer, but the best down payment source is cash, and then holding the property for 50 years and being prepared to not net anything for 5-10 years as you stabilize it.

if i am missing something, let me know.