You could however, purchase a property in AU, allow time for equity growth and borrow against that equity to invest. 

It might be better to refinance as much as possible while still maintaining cashflow and subsequently getting a HELOC in case you find a use for those funds that deliver a better return than the cost of borrowing.

But, I've been lending in Wisconsin for a little more than 10 years now and I've always lent 100% (up to 65%) to borrowers in my state (not outside Wisconsin).

Paid cash for the property by borrowing the money from a 401k.

Paid cash for the property by borrowing the money from a 401k.

In this scenario, I would put down 20% of the purchase price which I have for the downpayment.I was also thinking of how to structure the deal differently so that I would not have to give a 20% downpayment using a warranty deed and then refinancing soon after. using this scenario, my bank has given me an estimate of Cash from the borrower of ~$2,000.00 that would be all I would need to come to closing.

You can borrow from your retirement and pay that back over time, you can (ugh) use credit cards if you have enough credit. 

The only place it really exists is between you and your borrower.

So far....3 closed investments with complete return of principle making 9-12% annualized but taxed at short-term capital gains rates. 1 default with a 64% loss of principle (on a borrower who was a "repeat borrower" on the platform). 1 equity investment that in 20+ months has paid less than 2% and currently is looking to re-finance (and this was on a borrower who had "3 prior investments" with this particular platform). 1 pending closure with full return of capital. 3 investments that are paying between 3-9% annualized. 

Reconciling that mindset with a borrowers mindset for REI has been an interesting experiment but one that I think laid a good foundation for me.I'm looking to purchase a new primary residence in Colorado Springs this year and turn my current townhouse into a rental.