Selling gets a tax free gain and allows you to be more liquid; keeping it allows you to have once in a lifetime cheap debt and have that leverage on an appreciating asset. 

Liquidation – Selling a business while it’s thriving can seem like the right move, but you still have to explore leveraging its equity instead.

These were investments, the value of the assest are there, its the liquid that ran short and had to resort to credit cards to fix up the propertyYou spent $50k from savings, borrowed $50k from a 401k, and are paying it back over five years at around 7.5% interest, then borrowed another $40k from credit cards and are paying that back at around 8% interest, maybe more.

You might have other options to explore to drum up liquidity (HELOC, Margin Loan, Policy Loan, etc) that can supplement your HYSA in the DP.

When we were on a call with Lendbase and the lender, the lender was telling us we needed $2.5 million in liquidity post-closing but after speaking with other brokers we found out we only needed $300k.

You'll still need some liquidity for reserves and to be reimbursed for work completed in draws, however its usually limited to 10-20% of the rehab budget needed in reserves to make the deal work.You're welcome to DM for more details if interested. 👍 Good luck!

They could also sell the property to you and lease it back, allowing them to remain in the home while accessing liquidity.

I am just curious how people scale when they don’t have a lot of liquid cash like me?  

I don't know how much you have but a build to rent triplex all in our market is 150k liquid normally with full return of capital in 9 months.

., Arrived), or even short-term storage units.It all comes down to your risk tolerance, liquidity needs, and how involved (or uninvolved) you want to be.