I have some of the required funds in a HYSA, but will most likely need to draw from another account and I'm curious which method is the most efficient in terms of taxes/capital gains, penalties, loan repayments, etc.Based on my previous transactions in the market, I estimate ~$45k cash to close: $20k for the down payment, $15k for closing costs and prepaids, and $10k of starting reserves.

She isn't thrilled that her refund is so low but I was able to give her an exact account of the revenue minus expenses and she thanked me.Far fewer phone calls.

That is the basic run down, I would suggest syncing up with a real estate knowledge accountant for your specific situation! 

This is a very common way for people to investing using their retirement accounts.

The only “good news” is you’re paying for last year’s shortage and thsi year’s taxes, or this year’s shortage and next year’s escrow account. 

There is no exception accounted for in the subsections or linked sections that changes the meaning of that statement. 

Tenant covenants and agrees to pay interest at the maximum lawful rate or eighteen percent (18%) interest, whichever is less, compounded annually, on all unpaid Rent, damages, and other amounts owed by Tenant, excluding late fees, from that date of Landlord’s final accounting until such time Tenant pays all such outstanding amounts.

You can run the same scenario accounting for the tax hit if you kept it past the 2 of 5 year time frame I presume you are referencing. 

However, after accounting for long-term capital gains tax and other expenses, you would be left with $150k which is important to budget and account for.

Instead of their cash sitting in a savings account, they decided it would be a better investment to earn 3% on their money instead of .03% in the bank.