+$100k down payment? Is this the best way to utilize cash?

[Colton Dudley]

I currently live in a home with 2 roommates. I plan to move out and rent as single family home.

I plan to purchase another (owner occupied) home. I found a four plex and a lender who offered an owner occupied loan (no investors) with 5.125% interest rate. I was acknowledged the max loan amount for this interest rate cannot exceed $484,350. So if I get the four plex for say $600k, Ill have to put +$110k down to get to the $484,350 max loan amount with the 5.125% interest rate.

What I ask of the community is this the best way to utilize my +$120k? I can generate about $500/mnth and live in the four plex for free. After a year and I move out, I calculated a 15% ROI for the four plex. Is this really the best way to utilize my $100k, maybe up to $150k! depending on how much I can get the four plex for? Are there other loan options? Would it be better to see if the seller will carry me? Should I find investors instead (but then the loan changes and probably higher interest rate)?

What do you think!?