My monthly payment for my house with utilities is around $3000 because of interest rates.

When you said you had some money saved up, I was thinking that meant you would have enough for a down payment on an FHA loan.

To take it a step further we have been taking loans from our 401K’s to help support down payments on rental properties.

Whatever I do, I would need to do with a HELOC—effectively financing 100% of the property (down payment and closing financed with HELOC, rest of purchase financed with a mortgage). 

If cash flow is your priority, out-of-state investing in landlord-friendly, high-yield markets (Texas, Tennessee, Indiana, Georgia) is your best bet—use the HELOC for down payments and rehabs.

This gives you control without needing a large down payment or a mortgage.🔹 Profit Multiple Ways – You can rent the property for cash flow, sell the option at a profit, or buy it later at a pre-agreed price (often below market value).🔹 Great for Sellers & Investors – Motivated sellers can turn a vacant or hard-to-sell property into income while investors secure future deals without a huge upfront commitment.🔹 Ideal in Any Market – Whether home prices are rising or falling, lease options allow you to lock in today’s price while benefiting from future appreciation.Other creative strategies—like seller financing, subject-to deals, and the BRRRR method—can also open doors, but lease options remain one of the most powerful, low-risk, minimal cash out-of-pocket ways to build a portfolio.

My payment with insurance & taxes is $1425 a month.

Yet the payment processor is issuing the 1099-K to the property management company.

option D) Ditch hawaii for now and use $2-300k to pay down primary mortgage and use remainder $3-400 ish as down payment on cash flowing $1.5m 10-20plex in Anchorage.  

The plan was to utilize the HELOC as the down payment then getting a conventional loan to cover the remaining 80%.