This is relevant for multiple reasons 1) appreciation is where the real wealth is generated in RE 2) real estate has tax advantages over cash flow 3) in CA property tax increase is capped.  

What you would want to evaluate is the income generated from the income-producing property(s) to see if the income from your rentals would cover the cost of your new HELOC payment.

I want to use the profits from flipping in my home market to obtain and pay off properties in a better cash flowing, landlord friendly market.

And those also only have a limited ability at best to generate a balance sheet, which you generally want to include on a 1065 return.came here looking for answers to exactly this question, and David is correct re: why.

Buy a property to live in, fix it up, then sell it later for a profit.

Ok so this would be profitable for a potential investor if you seller financed.

Yes I could do a generator but that is more bother, tell the tenants to turn on the fireplace.  

They want something with a profitable recourse would be my guess. 

Selim, first of all, congratulations on a profitable flip!

We basically want property to generate some cash flow and long term appreciation.