Current House... rental or sale?

[Katy Oh]

Hello and Happy Wednesday!

 Loving BP and the knowledge gained as we enter into the world of investing. We currently own a house as of 17 years, refinanced once, in which mortgage payments are quite high.

1. Should we consider buying another house (possible flip) residing there while rehabbing and renting current house?

2. Sale current house, use cash for investing/ and rent. (bad, I think), 

3. Stay, use heloc to invest in rental properties. 

Considering the area in which we live, #3 might be the best option. Seeking advice on how to start investing with little cash flow.

Thanks in advance!       Katy