My goal is more appreciation than cash flow but would definitely avoid losing on both ends

It's not worth risking the invalidation of your IRA account which would cause penalties and taxes.  

These lines of credit generally have 1-2 year renewal periods and require you to send the bank your tax returns and possibly personal financial statement on an annual basis.In my experience "HELOCs" are associated with your primary residence. 

The last thing you want is to buy something and the Agent's estimate on rent and/or reassesed taxes was wrong and you end up with a non income producing property. 

Assuming you had your Roth IRA open over 5 years ago - you can take tax-free distributions any time time. 

As an agent, I scrub the tax and property records for data to find off market deals and skip trace using a combination of spokeo (alright) and batch skip tracing (better) and call using mojo dialer. 

You get all the benefits of real estate (cash flow, appreciation, tax benefits) with none of the headaches of becoming a landlord.Food for thought, and something I wish I'd figured out much earlier in my real estate investing career. 

Hey everyone still new here. lots of great info on this site, Shame I didn't find it sooner. so what is the general consensus amongst the REI communities on tax lien auctions? 

Here are some considerations for each option:Option 1: Using the HELOC for a down payment and renovation on a second property to rent:Pros:You can leverage your existing property to acquire another investment property without selling your current home.Rental properties can provide a steady income stream and potential long-term appreciation.You can use the HELOC funds for renovation, which can increase the property value and rental income.Cons:You'll have to manage the property yourself or hire a property manager, which can be time-consuming and add to your expenses.There is a risk of vacancies or unexpected maintenance costs, which could impact your cash flow.You'll have to pay back the HELOC, which will increase your monthly expenses.Option 2: Building a new house in a new community and selling it for a profit:Pros:You can potentially make a significant profit if the market is favorable and the property value increases during the construction period.Building a new house allows you to customize the property and potentially attract more buyers or higher rents.Cons:This strategy involves a higher level of risk, as you're betting on the market to appreciate in a relatively short period.There are many unknowns and potential delays in the construction process, which could impact your timeline and profitability.You'll need to have a good understanding of the local real estate market and construction costs to ensure that your project is profitable.Before choosing either of these strategies, consider the following:Research the local market conditions in Chandler, Arizona, to understand the current demand for rental properties and new construction homes.Consult with a real estate agent or investment advisor who has experience in the local market to get their insights on the best strategy for your situation.Evaluate your financial situation, including your income, expenses, and risk tolerance, to determine if either strategy aligns with your goals and financial capacity.Consider the tax implications of each option, as this can impact your overall profitability.Create a detailed financial plan for each option, including projected income, expenses, and potential risks, to help you make an informed decision.Ultimately, the best strategy for you will depend on your unique situation and goals.

The problem is the property taxes.