If you are buying a buy and hold rental, do not pull a HELOC or you're paying a mortgage payment on the new property AND HELOC interest.

I'd make sure you have enough money from a job to pay the mortgage if you don't have renters for some time. 

So in 3 years if you bought a $150,000 house, you would likely have accumulated $12,000 -$20,000 in equity on your $30,000 initial investment - not to mention your tenant paying down your mortgage, plus some really awesome tax advantages (3.3% depreciation, etc.), plus hopefully some cash flow!  

Where you would put in the mortgage the seller is financing.

If you use a DSCR loan you could maximize the equity you could take out while still breaking even on the mortgage + taxes + insurance.

Home mortgage is $3700/month and $500/month extra payment towards the principal.

The sale price will most likely be around $500,000 and the mortgage is currently about $200,000.I plan on using the profits (let’s just say $300,000) to build an ADU on property that my family owns in Central Oregon.

Even if you rent at a break even or slight loss, if you could have 3 years of rental income offsetting your mortgage while realizing 3-6% appreciation, could be worth it, especially if you think appreciating for this area will exceed national averages.

The mortgage was also raised due to insurance issues to about $1,950… so I am not making much cash flow, more like a cash trickle.

Current comps rent for $2450+ and the mortgage + HOA is $2180.