Advice on the best way to use HELOC

[Taylor Hutchinson]

I purchased a condo in a La Mesa, 2020. It has been a STR since May of 2021 and when its not booked I live with my partner nearby. The condo is still considered my primary residence so I am looking into a HELOC with a local credit union. Based off recently sold comps I can draw anywhere between 50-125K depending on which credit union I decide to work with.

In September I will be in a position to buy another property in San Diego with a minimum 3.5% down using FHA. My lender let me know he needs at least 6 months of employment history since I took a year off. Same line of work.

I am also interested in buying my first out of state property in either Nevada, Arizona or Texas. I still have some time do research and finalize on which market. This would require a 20% down payment. I would be able to do this sooner since I can start the HELOC process soon.

For an out of state investment I would prefer to rent to a tenant using property management, not use STR. If I decide to purchase in San Diego, I can SRT the property in the future.

Comparing 3.5% down FHA in San Diego or 20% down Conventional in another market seems to be similar amounts. I am looking for any advice from seasoned investors who can point me in the right direction.

From Sunny San Diego,

Taylor