A 1031 exchange could help you diversify into higher cash-flowing properties or a market with stronger appreciation potential.

This could be a great way to get started as you'll be at the property everyday and by living in the property not only will you be there firsthand to oversee the work being done, but you may also find new potential issues while living there.If you're looking to do this, I'd recommend a 203k loan to purchase the property and get some rehab funds. you'll just need to live in the property for a year before being able to lease it out to a tenant.

I choose that market due to affordability, potential cashflow and cash on cash return. 

@Lolo Druffif you're really thinking about buying there then I would recommend going there in person, potentially multiple times, and building a network. 

. - Four years of appreciation -100k HELOC for investing.TakeawaysThis house hack worked because I chose a desirable home in a good area with strong appreciation potential.

I would find an equity partner instead and you could potentially do a deal with no money down as long as you are providing most of the sweat equity and you can demonstrate you have the necessary "experience".

There’s so much potential in real estate, and with your experience, I’m sure you’ll hit the ground running.This is an amazing community to connect with like-minded individuals and learn from others who have been where you are now.

The trade-off is losing out on potential growth from a reinvested 1031 exchange, but if you’re thinking about a HELOC later to invest again, this could bridge the gap.What I’d do in your shoes:If it were me, I’d run the numbers on a worst-case scenario for each option.

Investment needs to pay attention to the quality and potential of the real estate.

Make sure you have the deal dialed as you will be selling the deal and yourself as the investment to these potential partners.