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.

[Joe Bertolino]

Quote from @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.

 Have you lived in the Sacramento house 2 of the past 5 years?