Hello From Newark, CA

[Tony H.]

Hi BP! My name is Tony from Newark,CA (sf bay area). I am new to the community and I learned a lot! I own a condo in newark and it has been having a nice increases over the years. Just recently i had a thought if tapping into my equity to buy an investment property outside the bay area. The property prices here are outrageous now. I have been thinking to invest in sacramento areas. However, i did a few research, including other suburbs, it looks like there is no way to get at least 1% cash flow. I have 2 goals that I know I can only get one or the other. 1. Get a investment property with a very nice cash flow to help me payoff my primary residence quickly. Or 2. Accept the fact of close to zero cash flow and hope for the best for appreciation. I am still debating between the two, but I am leaning towards goal 1. My reasoning: I am using Heloc that is tied to my primary residence as collateral. If housing market crash, i would lose a lot if not all that and my primary residence will be in "danger". Am i wrong to think this way? What should i do? Thanks BP!