What funds to use for down payment

[Ella G.]

We're ready to jump into a real estate investing (buy and hold, $100,000 single family home or less, out of state). We have the following funds avenues that we can use for a down payment, and wondering what may be the best use of resources. I would love input from the more experienced investors.

HELOC- Our primary home is worth more than double than what we owe (owe $95k, worth around $220k per Zillow). Downside is higher interest rate.

Conventional or other- We have approximately $15k in a high interest savings account. This is also referred to our EF which would cover 6 months expenses. We are considering using half of that.

We have approximately $19k in a taxable brokerage account in an index fund. We just stopped contributing to it monthly to start having more liquid funds, which was $550/month.

We also have Roth funds, which I know some use this as a EF too, so we have some flexibility here. 

What are your thoughts? What funds should we use and how much of it? Hold off and save more?

[Jacob Sampson]

1.  I would ignore Zillow.  Talk to a bank.

2. I prefer HELOCs for flips vs buy and hold because I want to pay it off in 2-6 months since the HELOC interest is adjustable daily.

3.  I would save up cash for the down payment.

4.  I wouldn't use emergency fund money.

5. I would not cash out a retirement account.

So I guess I would say save up more money and I would probably be ok using the brokerage account money.