Best way to fund down payment?

[Luke Schultz]

Considering buy a new primary residence. If we do, we would keep our current home as an Airbnb. We have the ability to put 20% down to avoid PMI. However, I am concerned about putting such a large amount down and loosing the liquidity and having to pay taxes to generate the funds (short term capital gains).

Options I am considering:

1. Paying the 20%

2. 5-10% down and PMI

3. 401k loan and have paid back in 12 mo

Interested in hearing other’s thoughts and perspectives?