Sell, Rent, HELOC or Cash Out Refi?

[Nick Schultz]

Hello BP!

I bought my 1st house in August 2018 for $268k. It was a 4/1 that I converted into a 3/2 with a master suite. My latest appraisal came in at $340k just last week. I want to make a move for my 2nd property but I do not have a lot of liquid cash currently. My ideal 2nd property would be a buy and hold rental SFR or duplex/triplex. It seems like my options are:

1. rent my current house for $1800-1900 (my guess based on current market) and buy a 2nd place with low down payment loan. I got my 1st house with 0 down @ 4.875% through my credit union. Current mortgage payment is $1450

2. sell the house and use the cash for down payments on 1-2 other properties. I owe $260k on the current mortgage and I’m not quite sure how to calculate how much I’d net after closing costs, fees, and taxes. Any rules of thumb I can go by?

3. cash out refinance. Not sure this is a viable option since I just refinanced at lower interest rate to drop the monthly mortgage payment. 

4. Get approved for a HELOC and use it when I find the right deal.

I would love to hear your feedback and ideas. Thank you so much for your time!