I bought a bunch of rentals in FL during the pandemic and am going to 1031 them into CA for the risk of weather and appreciation benefits.Some of my clients are doing pretty good with small-multi family in the Bay Area, but they are getting 20% discounts upfront by sourcing the deals themselves. 

I would first find a market that is suitable for you and showing signs of potential market growth.

You might also meet someone that could be a potential business partner.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

Find a property and hopefully purchase for a good price in cash (or a similar result, hard-monty option), perform the required repairs for your mother and potentially get the second rental unit ready.

Less Competition - High-interest rates and market uncertainty may deter some flippers, reducing competition for distressed propertiesMarket Demand - In some areas, there remains strong demand for renovated, move-in-ready homes.Price Negotiation - Sellers of distressed properties may be more willing to negotiate in a high-interest rate environment.Cons:High Carrying Costs - High-interest rates increase the cost of borrowing, which raises your holding costs (interest payments, taxes, insurance, utilities).Market Volatility - Real estate markets can be unpredictable, and high-interest rates may lead to slower home sales and declining prices in some areas.Renovation Risks - Unexpected renovation costs and delays are common risks in any market, and high-interest rates exacerbate the financial impact of these issues.Financing Challenges - Securing financing for both the purchase and renovation can be more difficult and expensive in a high-interest rate environment.Mitigation Strategies:Thorough Market ResearchAccurate BudgetingEfficient Project ManagementFlexible FinancingExit StrategyFixing and flipping properties in today's market can still be profitable if approached with caution and thorough preparation.

Our interest in the Donna Kay deal in Nashville, TN, was driven by:Strong Market: Nashville's robust real estate market.Profit Potential: An ARV of $315,000 presented a clear profit opportunity.Location: The property's desirable neighborhood added to its appeal.Collaboration: Partnering with Seth Choate provided local expertise.These factors made the deal an attractive investment for Partner Driven.

What is the best way to utilize this HELOC to grow my real estate portfolio and mitigate the risks of borrowing a large sum and not pay it back or worse consequences.

Our interest in the Donna Kay deal in Nashville, TN, was driven by:Strong Market: Nashville's robust real estate market.Profit Potential: An ARV of $315,000 presented a clear profit opportunity.Location: The property's desirable neighborhood added to its appeal.Collaboration: Partnering with Seth Choate provided local expertise.These factors made the deal an attractive investment for Partner Driven.

Initially, I relied on county GIS to identify potential properties and acquired contracts via cold calls, which led to my first six deals.