ReFi/HELOC For Next House?

[Braden Parkes]

Hey All!

Bought my home Dec31 2020 in Van Nuys, CA (Los Angeles) for $586k. (5% down, 2.99%)

Seeing very similar homes in my neighborhood (with even worse specs/curb appeal) going for high $800+ as of 2021.

Not ready to move on yet, but just trying to plan ahead, as I'm considering relocating outside of LA in the next few years, and will need to capture some of that appreciation gain to make a healthy downpayment on the next home. I'm trying to weigh out the pros & cons of either selling the home, or Refi/HELOC'ing it and renting it out, as appreciation is just so juicy in this middle-class neighborhood in LA.

I feel like I may be missing some details, or pitfalls of going the refi/heloc route though, so would love to hear some of your ideas and wisdom as to how to strategically move forward!

Best and happy new year <3