To Heloc or Not to Heloc

[Anthony Le]

Hi All, new to real estate and could use some advice. Would you HELOC in this situation?

I have a rental property in Las Vegas that is currently valued at $550K, I have about $220k in equity on the house and it's currently generating a decent cashflow of $800 a month - 3.25% Interest rate. 

I live in California though and am renting every year for about $3000 a month. If prices drop in my area, I'd love to buy but am short on cash. I'm wondering if it would be smart to take a 40k-50K HELOC in order to purchase a condo. The plan will be to live in this condo 3-4 years, rent it out or sell after. I can use my cash flow of my first rental property to pay the monthly HELOC payments.

Thoughts on if this would be a bad idea given the variability in interest rate of HELOC and the length of my loan.

Appreciate you all!