Newbie Question - How to leverage primary residence?

[Brenden Koon]

Hello BP moguls! I've been a fan of the BP podcast for about a year now and am finally joining the community here! It's already been a great source of experience and information for me and I'm so excited to get started. I have a question on strategies to get my first investment property, which I would like to be a multifamily rental.

So here's the deal: I bought my primary residence about a year ago (before I switched my mindset from Dave Ramsey to Bigger Pockets haha) with 20% down. Now that I have learned how to calculate cash flow, I have realized that my primary residence would not make a good rental. What are my options here? The way I understand it, I could either get a HELOC and tap my equity to use as a down payment for an investment, or I could sell my house and buy a house hack (but I would have to pay capital gains tax on the sale - my house has appreciated ~10%). Am I missing anything?