EXAMPLEYou cash out $100,000 of your equity and use this as a down payment on a $400,000 investment property.

I think this program is an incredible way for new young investors who might make under the income limit, to house hack in high cost areas, which will appreciate well, and then afterward they can buy more rental property potentially in cash flow areas.   

I'll keep just enough cash in my brick and mortar banks to make two months expenses and put all the rest into the online accounts with high interest savings.

In my experience the cash flow in the summer is strong enough to justify shutting a beach property down for the off-season.

Memphis has a diversified economy supported by major sectors such as logistics, transportation, healthcare, and education.

I have the option of pulling out a HELOC from my home in KY that could cover the amount for both HVAC systems. and if i do that i could most likely use the cash flow from when i move out to make the payments on the HELOC.

Raven,Reach out to @Lucia Rushton  I have worked with her on multiple deals to help her buyers and she is an investor friendly agent and understands value and cash flow.

It seems that I will likely need a decent down payment to get a cash flowing rental property.What alternatives do I have to raise money for the down payment?

.)-- Interest Reserve TBD-- 500 Appraisal (est)-- Builders Risk Insurance Policy TBDTotal Cash to close: 29172 + 6 months payments (not in escrow but demonstrated)You will likely need to wait 6 months to refinance.

Purchase price: $235,900 Cash invested: $70,000 Sale price: $399,000 Complete Renovation: deleting walls to open up kitchen into living room, new kitchen, cabinets, appliances, custom doors, floors, trim, paint, new laundry room, new powder room, new master bathroom, custom woodworking, exterior farmhouse paint, all new interior paint, etc.