Significant equity in two homes, stuck on what to do next, recently lost a job

[Sarah Rhee]

Hi. My life seems it’s at an inflection point.  I recently lost my job. I need to quickly and soundly and carefully determine how to regain some cash flow income stream, potentially utilizing two homes I own. My husband still works, and he has a consulting business, so for now we are ok, not great but not yet dire, he works 100% remote so only if it makes financial sense moving OOS to fulfill next step to get to financial freedom- it is an option . 
current picture. 
-own 2 homes, we live in very high price housing market, and own one primary home with equity of $5-600,000 at mortgage interest of 4.5%, and the rental property I own in the same Orange county area equity is $1200,000 or more at 2.5% mortgage so I will most likely never refinance. 

-I'm starting to look into Heloc and DSCR loan.
-have some saving but don’t want to tap into it too much. Cash if needed, $30,000-40,000 max. 

-don’t know what to do. Best options seem so far

 -Airbnb arbitrage? Where is a good market for this? 
-buy OOS duplex and live in one and fix it to rent Airbnb, while the other unit is being rented out. Some type of house hacking/str scenario—- idk if Orange county or SD is even realistic to consider house hacking w what above equity can pull, given such high price of homes. Plus there aren’t many duplex in oc, SD might I’m not sure. 
-BRRRR-never done it, don't know where to do it. Seems like a good method.
-just buy an OOS rental property with heloc to down pay and use DSCR loan. Idk where. This option may not be ideal if cash flow would be so very small, or difficult to find cash flow property due to high interest, because if there it isn't cash flow property loan won't be approved.

I need some cash flow to overcome my recent termination, $1-4000 would be good, much less than my w2 income but won’t be greedy.  because not just looking for cash flow. 

I always have been interested and own two homes but don’t know beyond that and very very stressed with a young child and uncertain future. 

[Tim Delaney]

Your remaining balances weren’t entirely clear on the two mortgages, they are really low rates, so instinct is not to refinance them, but sometimes it is worth it for the longer term vision.

It also seems like you may be considering tapping your equity to replace your income, without knowing your age or long term goals, this doesn’t seem like a great idea on the surface.

If you are interested in jumping into real estate full time to replace your income you should realize that is probably going to take 12-24 months. However, if you want to flip you may be able to make irregular chunks of income quicker that can make up the difference.

Which leads me to the utilization of your equity. If you are not going to refinance (which may be difficult anyway since you don't have a job), but are able to pull out HELOC I would use that money for short term investments such as flips or BrRRRs. A HELOC is not a great tool to use as a down payment on a long term hold, it is best used in quick turnaround scenarios. Since you don't have experience in flips or BRRRRs you may want to find a partner that does.

Hope this helps.