Started out at 19 not knowing much and buying on land contract with down payments from credit cards. 

This could temporarily reduce or pause your mortgage payments, providing significant relief.

He's offered it to me on a lease-option agreement, with a "purchase price" of $1.2M, "down payment" of $200k and 5% interest only payments on the $1M debt.

However, it may lead to higher monthly payments and increased debt.

This method not only ensures efficient funding during construction but also minimizes interest payments, given that construction loans typically extend over 12-18 months with interest-only payments.After the first year, my expenditures are as follows:Land: $200,000Construction: $600,000Interest: $60,000Total Investment: $880,000Here's where it gets interesting.

Is the pre-payment penalty worth the lower rate you'd get.

We have a $500k HELOC currently @ 9% we haven't used. we recently renovated and expanded this house so our basis is prob $1.5M so we're hitting the home exclusion cap.Potential to buy a new home in town (kids still need 4 more yrs before going to college) for $1.2M with some work needed and potential to expand a bit.Thinking we should sell home, take $500k tax free, put down 20% on new home so paying more in total mnthly payments but mainly in interest.

I have a few deals I'm working to get seller financing on but will require a down payment.

If not, are there other grants or down payment assistance programs for people who are repeat buyers?

So, I'm trying to decide between the two options below:Option 1: Buy a couple of properties and split the money from the 1031 exchange for the down payments.