Buy new home/rent out existing vs. BRRRR out of state

[Doug Bielecki]

Hi all, first time poster, been following for a few months.

Live in Bay Area, CA. Thinking of leveraging heloc to put down payment on another property around where I live, likely in the $1-$1.2M range. Would move family to new house and rent out existing. Likely wouldn’t cash flow existing. Property could break even before capex/vacancy, which really means I’m signing up for a monthly loss estimating $350-500 month while I cross my fingers the 9.5% CAGR continues on what’s today a $1.05M valuation.

Would you:

A) do this

B) if not, how best to leverage heloc for real estate investing

C) tell me what I’m not thinking about

Thanks all for your thoughts.

-Doug-