Use HELOC for a new Primary home or Buy a couple smaller rentals?

[Cory Hill]

I currently have a HELOC on my primary home for $80k. I have been wanting to reinvest this into buy and hold real estate for the long term. Where I live in Northern Colorado, $80k does not go very far. I have been looking at other markets to buy a couple smaller homes as rentals using my HELOC and the BRRRR method. OR I have the option to buy a larger home for myself (which I will also be house hacking) and then turn my current home into a rental which will perform with a $600 cash flow monthly.

I have been pre-approved for $400k for a new primary home. 

My interest rate on my HELOC is 5.5% for five years and prime after that.

My goal is to build a portfolio of rental properties to hold long term. Given my current position, which option would be the better move towards that goal at this time?

Thanks for your feedback!