Hi BP,I've applied for the new 5% down multifamily primary residence loan option for a 3-unit property, but keep getting denied at the Automated Underwriting System (AUS) stage. 

If you're concerned about the tax implications, definitely talk to an accountant well versed in real estate to go over your options.

Or - looking into different areas in the US to invest in would be another option as Bozeman is a tricky market. 

We have many beach condominium options in Orange Beach/Gulf Shores that qualify as a second home investment with programs with as low as 10% down, so you don't always have to come up with the larger down payment, but some buyers choose to go with a higher down payment to get a better rate. 

You get access to 80% of your cash back to move to the next purchase.The other option is use a small portion of funds 15% to purchase any SFR or 2-4 units through an investment purchase typically Bank portfolio.

Looking for the best software option to manage tenant screening, invoicing, accepting payments, etc.  

Option 1.

What other options are there for me to fund a down payment?

We attempted to get the sellers to take more money and offered them two additional options one with an extra $35k, via Subject To, and the other with an extra $70k with both Subject To and a partial seller carry-back. 

I think that it depends on the closing date and how long it will take the HELOC to close, I know that if I could go back, I would have done a HELOC a long time ago, it can be a great asset to build you portfolio and if I were you and I had the option, I would doi it regardless of the outcome of this next deal.