Best way to buy Mexico property

[Joseph Quarto]

Hello,

We are retired, comfortable with pension & SS., looking to buy a property in Mexico. Property is about $200k. Would be all cash. We may rent it about 2 months a year at about 4,000 net per month. But it is mostly for us & family to enjoy.

We have a multi-use y unit building we live in with great positive cash flow & a ton of equity, with only $52,000 note balance.

Question: best way to pay for the Mexico property

A) take cash from 401k, (pay taxes)

B) use LOC on the multi building. Would this LOC payments be able to be paid & written off as usual. If we sold this building in the next couple of years, does that LOC loan come off the top as an expense before we pay Capital Gains?

Any comments, suggestions appreciated

Joseph Q