HELOC for Down Payment on Investment Property or Sell and Invest?

[Michael Keane]

Greetings BP members!

My primary residence is a one-bedroom condo. It was recently appraised at $335,000 and I have about $245,000 left on my 30-yr fixed mortgage. 

I was considering taking out a HELOC to use toward a down payment on an investment property.

Alternatively, I was considering selling my unit and using the profits to invest in two properties: a new primary residence and an investment property. 

I would be grateful for any insights on which strategy would be optimal.

Thank you! 

[Michael Keane]

Brian, thank you very much for your insights. I'm actually approaching the 2 year mark of the purchase, so I appreciate your referencing the 121 exclusion.

You also mention 'house hacking'; I understand this is a broad term. Did you have a specific strategy(ies) as applies to my situation? I would appreciate your thoughts on this. 

Thanks again.