How to capitalize on my home’s equity?

[Jarron Vosburg]

My wife and I own our home in Nashville, TN.  We currently have $110,000 of equity and I’ve been thinking about scenarios in which to capitalize on this position.  Real estate in Nashville has never been hotter and, while no one can predict the market, I have concerns about a potential economic pull back and losing value in our home.  We want to begin to invest in additional properties, but I’m unsure of how best to proceed.  A few options I’ve considered are:

1.  Sell the house for cash, rent somewhere until / if the market pulls back, then start adding property(ies) while everything is low.

2. Continue to sit on the house, build even more equity, and open a HELOC to purchase a duplex rental.

3.  Rent out our current house, open a HELPC to purchase a duplex rental, live in one of the units and get the other unit rental ready. 

I’m sure there are strategies I’m not even considering, so curious to hear what others think.

Thank you!