LogFAQs > #903375883

So the reason I am considering it is because there is a seller offering good seller financing with a 50% down payment but to hit 50% I would either need to liquidate 401k or take out a 2nd mortgage on my rental property (or sell) which would kill the cash flow out of that unit.

So basically I can go to a bank with 30% down with selling my house and my non retirement account stocks and get a roughly 7% loan or I can get seller financing at 50% down with a 4% loan over 20 years no pre-payment penalty. At the 30% down payment I would be tapped out of cash then an unable to improve property quickly, and there is plenty of room to develop with good zoning and a good county to work with. Liquidizing the 401k would put me in a situation where it is generating good income right off the bad and I would have enough left over to add about 20 more spots which add around $100k a year in expected revenue based on current occupancy rates.

My other option is to sell or take out liquidity in my rental property. Quadplex has positive cash flow of about $30k a year, taking out $250k would cost me about $20k a year. Also it really feels like Seattle is in a bubble again so if my rents drop from $1800 to $1200 that would become a non-profitable venture then. Selling it I could easily afford the down payment and all the improvements I want, but I would be losing out on a reliable revenue stream then.

Writing it out I suppose a 3rd option is 30% down, take out only like $50k in liquidity in my property and use it improve the property to increase cash flow.
---

https://imgur.com/O3syCWD
https://imgur.com/k3YiBdG