A HELOC offers flexibility and interest-only payments but can be risky with rate fluctuations.

Also, at this time I had seen properties selling for 10 – 20% over ask regularly.Interest Rate 30 year conventional 7%Homeowners Insurance = $1,000 annuallyRents = $1,800 per monthWhen I looked at those assumptions, I would need to put down $80,000 on this house to get it to hit my cashflow goal of $500 minimum per month which equates to 35% down.Total mortgage + escrow = $1,267.13 per month with rents at $1,800 my monthly cashflow is $532.87.From my experience, after taking out vacancy and maintenance costs you are left with around 73% of that total cashflow number once the rental is established.People have asked why a $500 per month cashflow goal.

@David Avetisyan If you sell your home for $510K and provide a $10K seller credit, your taxable gain is based on the net sale price of $500K ($510K - $10K credit), as seller credits reduce the gross selling price for tax purposes.Tax Impact in CaliforniaCapital Gains Calculation: Your gain is the net sale price minus your adjusted cost basis (purchase price + closing costs + capital improvements).Primary Residence Exclusion: If you’ve lived in and owned the home for at least 2 of the last 5 years, you may exclude up to $250K (single) or $500K (married) under IRC Section 121.California Tax: Capital gains are taxed as ordinary income at rates up to 13.3%.The $10K seller credit lowers your taxable gain.

One thing you will want to explore is the tax rate in the specific counties you are looking in.

You could have your insurance cancelled but more likely you're going to see a rate increase.

It would be our second up down house hack, however, with interest rates in the high 6's, it would probably not cash flow after moving out.

By the time I was ready to jump back in and buy again rates had shot up as had prices.

If they can get insurance rates and mortgage rates to come down a little, we would have a light correction imo for SFH.

NOI divided by purchase price gives you cap rate. 

You get the best of both worlds in that way: No seasoning to pull cash out AND the conventional rate/costs and no pre-payment penalty which are all better then DSCR loans.