Rent Current Home and Buy a New One?

[Ryan J. Pelton]

First time poster, long time listener/reader-

So, I'm trying to get our real estate portfolio rolling. Have a great house, low mortgage payment, and in a rising market. Could get positive cash flow as a rental (300-600/month). 

The family needs a larger home and have an eye on a property in the area. The mortgage is much higher but has a rental property (studio apartment) on the property. Could easily get 5-700/month. And the new property would have built in equity without doing anything as it's priced right (15k under market value). A little TLC and equity grows 30-40K.

Crazy idea... Anyone ever try to take out a HELOC on their current residence for a down payment on a new property, live in the new property, and keep the existing property as a rental? Is that possible?

I know we could qualify for the new property with/without selling the current one. But, I like the idea of having two rentals with positive cash flow in this scenario (current residence and studio apartment at new one).  

I also like the idea of the rental incomes giving me some cash to invest in more properties. 

I'd love your thoughts, ideas, or tell me that's the dumbest thing ever! 

I'm a newbie so be gentle.  

Cheers,