New Member in Sarasota with some Questions

[Tim Aldrich]

Hello everyone, I’m pleased to join the BiggerPockets community. My wife and I are making the leap into real estate investing but obviously we have questions. We should have roughly $100k of equity with our current home. We have been thinking about renting this home out and purchasing another home for a live in flip. In our market and zip code the median rent is $1775 monthly, meaning we would cash flow $700-$1,000 per month from renting. Would it make sense to pull the equity from our home and use that to purchase our next home (live in flip)? Using the equity money for down payment and renovation costs. Even if we pulled 80% of the equity out of the home we should still cash flow maybe $300-$500 monthly.