VA Loan - advice for a first timer - rent or sell (CA)?

[Daniel E.]

HI everyone ! 

I'm rather new to BP and REI. I've been soaking up information for several months now trying to arm myself with the tools I'll need in order to start finding great deals and making a steady flow of passive income. Learning about potential ways to finance properties have been my biggest dilemma. However, I'm a veteran and purchased my first home 3 years ago under the VA loan. Before I started learning about RE, I did a streamline refinance on 237k with a fixed 3.25%, at the time it did make sense. Now, that I can legally rent my property, I have been trying to find ways on how to acquire my next property. I'm interested in small multi-fams. so I can still get a residential loan.

My current situation. I have just about 70k in equity and I'm house hacking. My personal finances are in a decent shape; minimal debt and some money saved (not enough to cash buy or put down a high down payment),  

My question is, should I use a HELOC and use that to help leverage another deal or would it be best to rent the property and after 6 months claim that as income for another loan? I would have to go rent a small apartment with this option.

The market in So. Cal. is insane right now! 

Thanks in advance for any and all input.