Instead of tying up your capital in a high-cost primary residence, consider taking the would-be down payment and investing it in out-of-state properties.This strategy allows you to diversify your portfolio across multiple assets, spreading risk while potentially generating cash flow and building equity in appreciating markets.

Overall sale prices of homes are lower than most areas so that 100-200K can be multiple down payment on investment properties.

I have tons of clients doing this with multiple homes now.

Hello, I'm looking for any perspective as I have no real estate experience.

If the property has multiple meters they're most likely going to see it as an investment property and I think you're going to  be hard pressed to find one doing 5% down.

Ben,First from a Bankers point of view you are over extended from an LOC perspective and its hurting your DTI and future approvals. 

Mind you, it's never wrong to bring any piece of information to the table but it's a good things to help putting it into perspective.

I would look at private money lenders who can consider giving your a line of credit based on a multiple of the cash you have. 

Here’s some perspective:1% Rule: Meeting the 1% rule is a good sign, especially with many markets struggling to hit this benchmark.Cash-on-Cash (COC) Return: 8.73% is decent, especially with today’s higher interest rates.

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.