Advice needed...1031 exchange or HELOC options

[Daniel Easley]

Hi Biggerpockets family,

I am in search for advice on entering into multifamily investing. My goals are buy and hold longterm focusing on cash flow. I’ll be inheriting a property free and clear, and wanting to move back down to the San Diego area. 

My thoughts are to never sell real estate, and keep the cash flowing rental of the free and clear property while taking a Heloc out of it as a down payment for a small cashflowing multifamily deal. The second option I wanted advice on was whether or not to do a 1031 exchange of our inherited property into a larger asset in SD.  

I really appreciate your time in sharing your wisdom!