The most important rule is to have the cash flow of the new property be able to pay all its expenses, mortgage, AND the line of credit back.

But it is very much applicable to single family rental and residential units simply by getting bridge financing and a post transfer cash out refi.

You'll want to make sure it cash flows each month.

So the idea of doing this all from afar is a bit daunting, however, I know the most important thing here will be to create a great team and outsource as much as possible.I have set my sights on a couple of different markets being in the Southeast and the Midwest; these markets seem to provide the cash flow I am initially interested in generating to value add to the properties I purchase.

If you don't intend to do that right away then do the 20% and save the extra cash flow.

You will also need to front some of the cash to start the rehab before you get a draw approved with most lenders.

@Jerry Chilimidos,Here is a list of lenders who specialize in lending to IRAs and 401Ks:https://www.biggerpockets.com/member-blogs/2810/50272-list-o...I don't know where your rentals are located and how they are performing but selling might be an option vs doing cash-out refi.I would certainly consider option C.

Do I wait another year to save more, or do I look into a HELOC or a VA cash-out refinance? 

When you learn to partner with professionals who are well-versed in this segment, most distressed property transactions are quite straightforward.Myth 5: Distressed Properties Are Not Obtainable with FinancingThere is this perception that distressed properties are cash-type deals.

What you use is what you have to pay back.Cash-Out Refinance Cash-out refinance this gives you cash from the equity you have built up in your home.