So if the house you are looking at is $400,000 in California, you will need $80,000+ to buy it with financing.  

And then you are applying for a HELOC on that same house?  

Over the years I've been involved in spec building projects of houses, small office parks, office/retail condos, etc.

Why sell if your rate on the house is good and you could have two cash-flowing rentals there, the main unit and the basement unit?

Almost all of these houses are much older, some not updated, but still similar size to mine.

We have a large demand for affordable housing.  

I focus on buy & hold renovation combined with STR house hacks.

I am Buyer A, who purchased a house requiring extensive repairs from Seller Z.

We have a massive influx of working professionals who need short term housing.

Most importantly, if you decide to rent out your house, use the BP resources and learn the ropes even if you get property management, because you will need to ensure they are doing what they should be.