Starting out and need advise on current situation

[Dustyn P.]

We purchased a house back in 2017 for 140k that is now worth approximately 265k. Current payment on it is around 900 with about a 4% interest rate.  The expected rent is 1,600/ month.  

We purchased another house and are finishing remodeling it and have about 20k left to spend to finish and move it (cabinets and countertops) and this will be our primary residence.  

Then we have an opportunity to purchase an investment property with a partner and the expected cost per partner is 137,500 with the expected rent per partner to be about 1,600.  The units are ready to rent with very minimal work to be done before renting them.  

I have 2 specific questions. Should we rent the first house out or sell it? The 2nd question is should we pursue the investment property even though we are more cash strapped than normal due to the remodel and if so, would using a HELOC make sense?

Any help with this is greatly appreciated! 

[Robin Simon]

Quote from @Dustyn P.:

We purchased a house back in 2017 for 140k that is now worth approximately 265k. Current payment on it is around 900 with about a 4% interest rate.  The expected rent is 1,600/ month.  

We purchased another house and are finishing remodeling it and have about 20k left to spend to finish and move it (cabinets and countertops) and this will be our primary residence.  

Then we have an opportunity to purchase an investment property with a partner and the expected cost per partner is 137,500 with the expected rent per partner to be about 1,600.  The units are ready to rent with very minimal work to be done before renting them.  

I have 2 specific questions. Should we rent the first house out or sell it? The 2nd question is should we pursue the investment property even though we are more cash strapped than normal due to the remodel and if so, would using a HELOC make sense?

Any help with this is greatly appreciated! 

Elaborate a little more on the financing plan - "cost per partner - $137,500" is that assuming a $275,000 purchase price with no debt? And would the HELOC you are mentioning be on one of your current properties? Definitely at least would seem exploring just taking out a 20% down payment loan with the partner on the investment property purchase but I'd have to see more info