HELOCs or traditional financing may also be better options to preserve retirement funds while minimizing immediate tax liabilities.This post does not create a CPA-Client relationship.

@Lily Jensen Getting a HELOC on an investment property is not an issue.

Thank you so much for the praise as this hypes me up for my next purchase this year as a 20-year-old using my first brrrr and funds from my house hack HELOC to fund it!!!!

Here are a few strategies to consider for funding a down payment:Partnering: Like Gregory mentioned, finding a partner who can contribute to the down payment in exchange for equity or a profit share is a solid option.HELOC or Cash-Out Refi: If you have equity in your home or another property, a home equity line of credit (HELOC) or cash-out refinance can provide the funds you need.Private Money: Reach out to friends, family, or private investors who may be interested in lending you the down payment with a promissory note.Seller Second: In some cases, the seller might agree to finance a portion of the down payment as a second mortgage.Live Frugally and Save: It takes time, but reducing expenses and setting aside funds from your income is a tried-and-true method.The right approach depends on your situation and deal structure, but a mix of creativity and resourcefulness can go a long way.

A tidy profit, plus confidence to tackle the next project solo.On the topic of self-directed IRAs: While they’re fantastic for gaining experience and diversifying into real estate over time, they can feel restrictive if your main goal is scaling quickly.Here’s what I’d focus on:Using Equity Wisely: A HELOC or cash-out refinance could unlock funds to pursue a flip or duplex without touching your 401(k).Partnering Smartly: Your realtor friend sounds like a great resource.

Has anyone used bridge loans for this type of strategy or is there any other loans that anyone would recommend other than HELOC?

  $19k if I can manage to sell my 6 unit dud and pay my heloc down.  

I used a 1st lien position HELOC.

I think the HELOC is the way to go if you can - However after reading your post, if you are talking about a 6 figure pay day, how long would the property take to generate that 6 figures in cash flow?

You can also do this on a refinance.Else, you can find private money, take out a HELOC if you have a lot of equity, go hard money and then refinance after, or see if your preferred builder offers financing.