Getting cash for first deal?

[Kris Langford]

Hi everyone,

I wanted to ask how you all might proceed if you were in my shoes. 

I have read up on the BRRRR strategy and think this model sounds like my cup of tea. I have a goal to retire from my full time 9-5 job in 10-15 years and build enough cashflow to facilitate this. If I can reach 10k in monthly cashflow I will consider myself retired.

A little background;

I currently own a SFR starter home 3 bed 2 bath in the Portland, OR area(Tigard to be exact). The comps in my area go for around $325k-350k. I have been in my home for 5 years and owe $194k. I have a VA loan so renting this property is not an option unless I refi.

I have talked with the bank holding my mortgage about an HELOC. They said I could expect $55-60k as a line of credit based on 80% LTV. My mortgage would increase by approx $400 per month based on their terms.( sorry I forgot to right down all the terms since I was just inquiring at the time, 3months ago) I'm pretty sure it was on a 30yr fixed.

My wife and I both work full time and have 2 small kids at home. We have very little cash savings, so our only option (in my mind) is to borrow against our only asset, the equity in our personal residence.

My questions are;

If I am looking to acquire my first investment property using the BRRRR model what would be the best first step?

1. Should I consider selling my house and looking to turn the cash into a down payment on 2 separate houses, one being my primary residence and the other an investment property? ( my wife would hate living in a different house, unless it is an upgrade) 

2. Follow through with the HELOC and use the cash to put down on my first investment?

3. same as above, but buy in a market where I could pay cash for my first investment?

4. any other option I am not thinking of yet?

Again I am looking to start down the path of the BRRRR model.

Thank you all for the help. I have already learned a lot from this site and look forward to learning a lot my in order to achieve my goals.