Suggestion needed on buying a property

[Aariff Kadar]

I own a home (primary residence) in Corona, California and i am planning to buy another house in another expensive area (Irvine, CA) which is close to work place because i am spending 2 hours in traffic everyday.

My current residence is in 15 years mortgage and paying $3000 as monthly mortgage plus tax and insurance. I have almost 300K equity on it.

I have come up with few options and i have listed below. I am in dilemma on which one will be good for me.

If  i rent my current residence, it does not give positive cash flow because i am on 15 years mortgage and i end up paying Tax and Insurance after mortgage payment from rent.

1. Borrow money from 401K and buy new primary residence with 10% down (i need to pay back 401K in 5 years)

2. Rent a house in the new area, Rents are expensive in Irvine, CA. 900 - 1000 sqft apts rent for $2500, my corona home will rent for $3000.

3. Sell my corona house and make 250K to 300K down for new house in irvine

4. Save some money for 10% down and buy house in irvine, CA

5. Cashdown refinance my current property to 30 years loan, which will make my mortgage as $1900 plus tax and insurance. I am hoping $200 to $400 postive cashflow

Which option will you suggest for me to move ahead. I am planning to take action during next summer.