If purchasing new real estate as part of your reinvestment, a cost segregation study can maximize depreciation deductions, offsetting future taxable income.For effective planning, assess how the sale price is allocated between real estate, tangible assets, and goodwill, as this determines the tax treatment.

Some serious baked in costs for each. 

Considering opportunity cost of not affording more rentals vs paying much more in interest.

Namely, that if a tenant (in this case accompanied by a whole family) ends up stop paying rent and I would be on the hook for both covering the mortgage and dealing with open ended legal costs and time.

.- Stock market opportunity cost: If the brokerage account has strong holdings, consider if the return potential justifies cashing out now.Given the current market dynamics and your goals, reallocating your brokerage funds into a multifamily property in Rochester could provide substantial benefits.

And maybe diversify a little, invest half in a low cost S&P500 fund like VOO and the split the rest across 2 or 3 syndications.

Double the cost of that house and double the rate to 7% and its like $4,000 per month for the EXACT SAME HOME. 

To Sum it up, its a good idea if you can exceed the cost of capital (higher rate than your cost of debt) with what you earn on your heloc/debt you pull out and invest.The question is how much gains above is enough to substantiate the risk of your variable interest rate, well thats up to your personal investing criteria.

Account for all costs, including closing fees, holding costs, and repairs.

We just need to verify that you have cash for the downpayment, closing cost, and up to 6 months of the mortgage payment as reserves.