You can use the cost of the land and the other costs you have already spent toward the down payment, so I suspect you won't have to inject anything else into the deal.

However, I am in dire need of down payment assistance.

So I said its probably best to just pay the tax.If an investor overpay a ton, just to save on taxes, most likely they'll be inflicting significant financial damage to their portfolio… it’s probably best to opt out and pay the tax.1031s aren't structured in a way that makes someone "overpay" - it mainly comes down to poor planning which puts them in that situationNever let the tax tail wag the dog!

She had a choice of putting down a deposit equal to two month's rent or paying monthly "deposit insurance." 

However I may need more cash to give to rent to own as a down payment to move into the house after their investor purchases it.

I’m being advised to put 20% down and afterwards I’d basically be breaking even with all the units tenanted. 

We did the same thing with the house down the street, so that helps.

It seems like I could take $120k or so out of the Townhome to then use it as a down payment on another one or two.

Why not go 20% down DSCR instead?

Hey everyone, as I'm sure you all know, it's hard to find properties that cash flow (or really even come close to 0) with the traditional 20% down and 7% interest rate that we currently have.