100K HELOC - First Property Advice

[Colton Pierce]

Hi! I am looking for some advice on how I can maximize my $100,000 HELOC with Real Estate Investing.

Here are some of the specifics of my situation:

Currently residing and working in Salt Lake/ Utah County. Which I would like to stay in or around this area as it’s close to family and my employment.

Current mortgage on Primary (nothing drawn on HELOC): $1,400

2.99% initial Rate on the HELOC with no Initial Draw amount. 15 year draw period with a 25 year repay.

My dilemma is I would like to get into a home with the low down payment options to live in for a year and then repeat the process. This would also allow me to obtain more rentals in the next few years using the same amount of cash versus putting 20% down for a Investment property. However, in the SLC market it is nearly impossible to meet the 1% rule/find a cash flowing rental to pay back whatever I end up taking from the HELOC as a down payment/Closing Costs. So essentially I am stuck either investing out of the state (20% down) OR gambling with rent increasing (possibly negative cash flow for a bit).

Since this is my first property, I need to make sure that I am making the right move to snowball my investing. Any sage advice is great and a plus if it’s in SLC or a market where you are currently invested. 

Thanks in advance!