What would you do? Sell, HELOC or something else?

[Kari A.]

Hi all,

We currently own condo (2/2) in Honolulu and approved for $250k HELOC. We're deciding to whether to take it or sell it to obtain fund to start investing in real estate. I am not experienced, but would like to start investing in real estate (including other states). Could you give us advice/insight on our situation?

the condominium unit:

- purchased 10 yrs ago, Renovated and rented out for a while

- 2bd/2ba/1pk

- HOA: $1000

- expected rental price if rented: $2200-$2300 ?

- selling price : $600k, I hope. ( 3 floors below sold for $550k)

- No mortgage

The condominium is well maintained, yet very old that there seem to be many problems also there will be special assessment)

If taking HELOC, we'll have some fund that can be used right away if we find a good investing property. Yet, we won't be able to put our current condo for sell - the bank told us that it can not be sold or rent out for 1 yr. Also if sold within 3 yrs, there's penalty.

If not taking HELOC, we can sell the property, but not sure when it will be sold - till it's sold, no fund to purchase properties.

What would you do if you were in this situation? Would you take HELOC and hold the condo ? Or would you try to sell the condo now? Anything that we should look into ?

Any idea, opinion, thoughts would be very much appreciated.

Thank you.