How should I buy this fourplex?

[Ben Workman]

I’m under contract to buy a fourplex at what I think is a good deal. I’m thinking of a couple options as far as how to buy it.

Option 1 is selling another rental property I own that cashflows a few hundred dollars less than what the fourplex would cashflow. I would do this in order to have enough for the downpayment (56k). This could be done in a 1031 exchange, although I’ve never done that before.

Option 2 would be to try to figure out a way to not have to sell my other rental property at all. I would have to borrow money from a private or hard money lender. I can take out a HELOC on the rental I have, but I would only be able to get about 25k from that.

I prefer option 2, but I have no experience in private/hard money lending and I just thought of this option today. I will probably be making a few calls tomorrow.

Any thoughts or advice on what to do would be appreciated. Thanks!