Rent out and HELOC on current residence to buy second home

[Yi Ke]

Hi, I am currently in a 2BR townhome in the Bay Area and are planning for my second child and a bigger home in the next year or two, 

My current residence has 700K remaining on 1.575-1.6M value (last refinance appraisal in 2021 was 1.6, nearby comps) with PITI of 4900. I can expect to rent this out for 4500-4800 based on leases going in my neighborhood. I don't have enough cash on hand to make a down payment on my next home, which would be in the 2M range, so I have to tap into the equity here.

My end goal would be rent this out for the next 2-3 years offsetting most of the negative cash flow / HELOC payments while betting on further appreciation of its value, then sell this property off to take advantage of the 2/5 rule and cash out.

I think the things I think I have to worry about are:

1. The complexity of becoming a landlord and renting this place out, although this is an upscale nice neighborhood so I don't expect problem tenants, maybe I'm fooling myself.

2. Will a lender be able to consider my anticipated / lease contract income on the first residence to help push down my DTI before I get to report it on next years taxes? The HELOC for 400K or so will be ~1200. With a couple of car leases, I think having the rental income included will be necessary to qualify. My wife and I together will be gross ~400K/year. This ties in to the next question:

3. I am finding inconsistent numbers for maximum DTI for a jumbo for me to do a quick calculation, what % are lenders looking for?

4. What would be the correct order of doing things, get a HELOC, move into a rental and clean up the current place, get a tenant, start working with lenders, buy new home?

5. Is this too much risk in general?

I am just starting on this path and will continue researching, in the meantime, would really appreciate any advice on what are the right questions to ask and who to engage for deeper conversations, thanks in advance!