Next Move? Multi-Family live in value-add?

[Nicole Shoaf]

I currently own two properties - my primary home and a vacation home in Truckee we rent out on Airbnb.  Both homes have mortgages, about 37% Loan to value, at an exceptional rate of 2.625% (15 yr and 20 yr respectively, both refinanced in 2020).  I'm worried that this equity we are sitting on is not being put to its best use, and am wondering what someone in this situation would do?  A home equity loan seems like a possible way to expand my portfolio, would consider buying a multifamily and renting out our current home to live in one of the units and purchase it as a primary home (assuming its 4 units or less), but being in the Santa Cruz CA area, I am afraid I'll need to look outside of CA for any deal that makes sense, and can't afford to lose my great job (can't work remotely).  I'm afraid of the unknowns with out of state investing, and am afraid of overextending myself financially.  Thanks for any insights!