STR down payment options?

[Cory Lucas]

We've been wanting to do STR for awhile now, down payment is of course the big factor keeping us from doing so at the moment. So, I'm curious as we're going to see if we have enough equity to help, which you all would recommend? Cash out refi, 2nd Mortgage, or a HELOC? I love the idea of a HELOC, but I'm thinking that might not be as adventitious as a Cash out refi or 2nd because of the likely high dollar amount that would be getting paid off when doing an STR.

And/or for those that are in the game other creative ways to finance the down payment? Things like seller financing or is there some other creative way to structure a deal to do so, like utilizing future rents somehow? 

Thanks in advance for the time and feedback 

[Cory Lucas]

@Jaron Walling good stuff, appreciate the insight. Yeah I'm quite sure seller financing is not happening that often right now, I was just tossing that out there as I'm curious what others do to mitigate/lessen the amount of a down payment

It's going to be interesting to see what happens in markets. That's been my biggest obstacle at the moment, even houses that I could do some fix up on the price point just to buy it is out pacing the rental rates