Borrowing cash from another source does create a lot of risk so make sure to stick to your numbers and make the deal happen where you minimize that risk.Another option perhaps not mentioned is a wrap-style deal subject to or seller financing.

Having the ability to live for free, while minimizing the taxes on my W2 income.

The sharks circling a high-income earner started to force their "passive income" pitch. 

When you say "open to investing anywhere that makes financial sense" you just invite everyone to pitch, especially when you also say you have 400k to burn so be careful.

Valuing a YouTube channel with 5,000 subs and minimal viewership at $200,000 is pure nonsense.

@Mike Sferayou got some great responses to this including from @Kevin Sobilo and @Bill B.there is no right answer to this question.right now, i am looking to minimize outlays on rental properties, and am having success with seller financing. 

@Thomas Sheehanonly you can decide what makes sense for you financially, but I would not put $200-250K into a property to generate minimal cash flow. i look to minimize my outlays when I purchase.

Liquidity: If this is your first or second property, prioritizing liquidity (by cashing out now) might allow you to seize unexpected opportunities, especially if you’re actively prospecting deals.Since you don’t have a deal lined up yet, you might explore options to minimize the gap, like prequalifying potential deals or using short-term financing strategies to bridge the 4 months.Good luck growing your portfolio!

Might not be ideal to go from a personal home to a duplex/triplex/quad but it's a great way to buy with as minimal % down as possible. 

If we throw all of this out of the window, what would you recommend I set up for both asset protection, minimizing tax liability (including CA crazy $800 per LLC fee), and probate planing.