Sell and Buy, or Heloc and Rent?

[Josh Matteson]

Hello BP,

I’m deciding between 2 options and would love some guidance. 

Our family just grew and we are looking to get into a new home. Our current mortgage has built up quite a bit of equity over the last few years and trying to figure out the best course forward. My goal is to own 2 rental properties this year, but also want to be wise with how I get there. 

Option 1: Keep current house with low interest rate and use a heloc for a DP on the new property and keep the current one for a rental.

Option 2: Sell the current house and use that for a down payment and finish paying off some low interest debt, then save up for a rental. 

Any advice would be appreciated!