Equity/Financing an Investment Property

[Luke Hamlin]

Hello,

I am interested in purchasing a recently renovated $195K property as a 'secondary' home for the next 4 years to use as a future LTR. I am active duty military and plan to use the property for deployments/holidays for my family to stay near relatives until I separate in 4 years, then to use that property as one of several future investment properties. I make around $110k+ per year, live off around $75K, have a mortgage ($1900/mo for rent, escrow, tax), around $40K in equity, and no other debt. In short, I can afford the additional $1100/mo cost of a second house, even until I rent it out.

I have around $35K in HYSA and emergency funds that I could use for a down payment, but that's less than 20% which would be required for a conventional loan, assuming full purchase price. I can't leverage my remaining VA loan entitlement to fund this because it is a 'secondary/vacation' home. So, what is the best option for me to have the capital to fund this property? I am extremely familiar with the area, I know that it can rent long term, and it is perfect for my family's current needs. Do I wait another year to save more, or do I look into a HELOC or a VA cash-out refinance?

This would be my first investment property and my second property overall. Thanks for any input.