I would make sure to connect with an investor friendly accountant to understand the tax benefits you may be able to pursue. 

My cash is in a high yeild savings account only making about 4.5%. 

That would put us just above 1.6% of the $1.1M purchase price, so still short of the 2% Rule (and it still doesn’t account for the renovation costs).All of this begs my question: Is the 2% Rule still alive in the central Pennsylvania market in 2024? 

When we did it, new management had old manager transfer all funds held in relation to our account to the new management, including existing security deposits. 

These are not typical life insurance policies.If the down payment comes from an existing asset whether it is money from money market, money from savings account, money from CDs, money from heloc, money from selling stocks, money from stock margin, gift from family, money from life insurance it does not achieve a 100% LTV with respect to determining return.  

Retirement account?

Their rationale is based on Illinois law, where security deposits must be held in a separate account and accrue interest if held over 6 months.

Especially in tax advantaged retirement accounts. 

I don't frankly know I have a dinner with him in a week or so will get more detailI know he bought a facility .. he owns dirt all over Oregon so that's not an issue.. and I know he has the financial ability to execute.. what I don't know is if he has just done these so far for his own account or has sold to the public.Standby I will find out and report back..

I use Quickbooks online for the formal accounting so it's easy for my tax guy to get in there and do his piece every year, since I have an LLC per building.