You can do an exchange for less than the full amount, but you will owe taxes on the boot.

Key Deal Points:Loan Amount: $88,000Lien Position: 1st position Purchase Price: $120,000Appraised Value: $250,000Interest Rate/Return: 11% annual returnTerm: 5-year balloon (meaning the entire principal and interest must be paid at the end of the term)LTV ratio: 35.2%---Licensed Lending company for contractsRMLO package completed on buyersServicing company for payment

Home equity is the difference between what your house is worth and what you owe on your mortgage.

I still owe about $140k on the current condo.  

I don't think we owe $800 in CA, we incorporated in GA and have a registered agent in GA. 2.

However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

Owe 300k.

So, based on your numbers you could borrow up to 243,750 on property A, but owe 220k, so that would only be 23,750 in borrowable equity. 

I don't know the specifics of your state, but in Mississippi, my property manager has filled for garnishment for the amount of rent that is owed.

Lease Terms: Determine a monthly rent payment that covers the HELOC repayment (interest and principal) while providing some positive cash flow for you.