Cash Reserves needed with a robust HELOC?

[Dan F.]

Hey BP,

I'm new to REI and just joined in early Dec. It's amazing the wealth of knowledge contained within these forums!

Here's my situation:

I just closed on my first investment property in San Diego two weeks ago and it went great! For my next deal, I plan to look out of state at SFH in the 100-150k range (exact area tbd), potentially using a turnkey company.

The problem is that I used up nearly all of my cash in the last deal. However, I do have a 130k HELOC on my own home. I'm debating between using that HELOC to finance my next SFH (either via traditional financing or an all-cash purchase) versus waiting a few months to save up the cash. What is a reasonable amount of cash reserves to build up before I dive back into purchasing? Thanks!