Hi BP community - I'm an investor with 3 SFHs in the Nashville area looking to acquire my first small multifamily property (2-4 units).I'm trying to determine the best approach for the 25% downpayment, comparing using cash that is currently sitting in a high yield savings account to funds from a HELOC on one of my properties.

That 4% cap rate on in place financials is a lie.  

It's pretty east to get into the 20% long term capital gains rate and 3.8% Net Investment Income Tax. 

ConsiderationsCrime Rates: Some parts of Albuquerque have historically struggled with higher crime rates.

Right now, you have a property with a great equity position, solid cash flow, and cheap debt (interest rate is low). 

You can test this, by asking some to SHOW you how they calculate ROI, Cap Rates, Cash-on-Cash, etc., for their clients.Many will say, "that's the investor's problem".They are correct because an investor should NOT rely anyone else to run their numbers.So, then what exactly makes them investor-friendly?

Whatever you decide, best of luck to you! 

Under this scenario which strategy has the highest vacancy rates.  

The interest rate is not special nor is the 20% down (80% LTV).  

@Jordan Miller most Class A & B rental properties bought since 2021 really don't cashflow from day one.Class B will take 1-3 years to start showing cashflow.Class A, 3-5 years.Current investors keep making the mistake of looking back at deals from 5-10 years ago when prices & interest rates were both a lot lower, but NOT rental rates.