HELOC to buy 2 rental property or sell house in 2 years?

[Patrick McGinn]

Hello, I have a question with many answers. Trying to narrow down the right one. My goal is to scale and acquire sfr and/or mfr before interest rates price me out of profitable real estate. I own a home in Sacramento California. I bought it in 2020 at $260k & it has appreciated at least $100k. I'd like to pull out equity to buy positive cash flowing properties OOS. I am 70% through your book. I am thinking about taking a HELOC with an 80% LTV & a promo of 2.99% for the 1st year & 4.99% starting after that. I owe 200k on the house, so the HELOC would be for 88k. I was thinking about buying 2 sub-100k properties OOS with the money, between August & December 2022+$$ for repairs&reserves. The promo lasts from Aug '22- Aug '23 & we pay the variable rate for 1 year & then sell the California house in fall '24 to pay off the HELOC. Right now the California house is rented. The mortgage is $1271 but after vacancy, repairs/maint, capex, I break even every month. What are my best options in your opinions? Any insight you can provide on what you would do would be helpful for my journey.