Looking for advice and wisdom in the Bay Area

[Luis Escobar]

Hi BP community, I own a rental (recently was a primary) in the Bay Area and couple of duplexes in the California Central Valley, and properties in Indiana. However, I am currently renting the place we live in and now have decided we want to set roots and purchase a primary home to do so. In order to do that we need 200k for a 900k to 1mil purchase price. The following are scenarios I am considering: 1) sell our property in Benicia (about 45 min from sf). Currently owe 380k projected to walk away with 200k profit after expenses. I have and additional 120k totaling to 320k down payment. This would help keep mortgage payments lower and possible a nicer home as well. Or 2) pull an equity line for about 60k on Benicia property and add that to 120k savings and it would get me to 180k total downpayment. That would result in a higher mortgage payment and a bit stretched thin financially. Obviously the positive to this is that I get to keep Benicia property and almost break even on the equity line with the cash flow from rent. The plan would then be pay back equity line once primary home appreciates and I can pull some money out. Approx payment on 60k equity line would be like $350 and interest only. Depending on appreciation of new property I might be paying this (through cash flow hopefully) for many years. Any thoughts on these scenarios? Am I missing any thing I should be thinking about? Thank you an advance for any insight.