Quote from @Jimmy Chao: I am weighing some options to help my younger brother buying his first primary with a fixer.

I'm considering tapping into the equity from either my primary residence or rental property to purchase another rental home that generates solid monthly cash flow.I'm open to investing out of state and have heard that areas like Ohio, Tennessee, Georgia, and North Carolina offer potential opportunities.

I'm very new to investing and weighing which options would benefit me the most.Option 1:  Use the cash as down payment on another primary residence and rent out the current.

Depends on the actual deal I have seen 85/15 rarely 90/10 but keep in mind your primary home will have a second lien on it typically if your LTV is over 75%. 

Quote from @Luisa Morejon: Hi everyone,My husband and I will be downsizing from our primary home into a townhome that we own as an investment property currently.

Purchase price: $325,000 Cash invested: $150,000 This was our first primary home and was converted to rental after living in it for 10 years.

I currently live in it as my primary residence but had plans to eventually rent it out and then cash out refi once I reach 20% equity in the property.

It was my primary residence for two years before I turned it into an investment property.

Hopefully in just a few years the cash flow can help fund your Primary rehab and enlargement.

(May also cut significantly into the current cash flow on it)I know you mentioned not doing a HELOC on my primary, but wouldn't it be advantageous to have the ability to pay off the line of credit instead of be stuck in a payment that is much higher?