Here’s why this can be a great option:You can lock in a lower interest rate on the HELOC since it's based on a primary residence rather than an investment property.You keep your existing home, allowing it to appreciate while your tenants cover the mortgage.You now have two properties working for you—one generating rental income and another as your new primary or next investment.For analyzing rental cash flow, some key numbers to look at include:Expected Rent – Research what similar properties in your area are renting for.Mortgage & HELOC Payment – If you use a HELOC, factor in the monthly cost.Operating Expenses – Taxes, insurance, maintenance, potential property management.Cash Flow – What’s left after expenses and mortgage payments.If you do decide to sell instead, you can also use that equity strategically—whether for a strong down payment on a multi-unit, house hack, or another single-family rental.On the networking side, attorneys and other key professionals can be tough to find in everyday settings, but real estate investor meetups, Facebook groups, and local REI events are gold mines for connecting with them.

The allure of fat cash flow (at least on paper) and the low barrier of entry (down payment) never stop attracting new investors. 

Are there issues that you think you should avoid regardless of potential for discount? 

You can also potentially bill back tenants for usage too.   

Potentially interested in surrounding markets.

In the near future, we’ll be visiting The Shoals area in northern Alabama, where we’re considering a potential move this spring.

If you have any leads or information, I would love to connect and discuss potential opportunities.

.: Any idea how far south the potential for Santa Ana or similar winds goes?  

I'm also concerned older homes have already seen their biggest jump in capital appreciation and don't have as much potential for price growth compared to newer homes.What are your thoughts on older homes?

Seems like a property that isn't going to appreciate rapidly so cashflow will be vital to its investment potential.