Is it possible to get a HELOC on bother properties.

It also takes away the ability to have an exit strategy, use for HELOC, and most importantly -long term growth. 

This should inform whether selling makes sense in light of your other plans.Personally, given the low balance on the outstanding note and the presumably low Prop 13 property taxes you will pay on it, I would hold it as a rental and take out a HELOC to use for investment capital.       

I recommend consulting an experienced agent first though, they can help you out a lot.You could also take out a Home Equity Line of Credit (HELOC).

Use my equity to purchase an investment property using a HELOC and stay put in my current house for a few years. 

My strategy has been to take out HELOC's rather than cash out refi's simply because you do not pay interest on the HELOC funds until you pull them. 

You need a place to live, and you can some day pull equity out of it in the form of a HEL or HELOC for your REI.

I also have a HELOC for 62k on this same residence. 

Once enough equity is built in this first rental property, I would then (when the right property presents itself) pull out a HELOC and use that as a down payment on a second rental property.If I can generate around the same amount...if not more....of cash flow from the second property I would then use both positive cash flows to pay off the first rental in full as soon as possible.

$ divided up:100k liquid200k Paid off property(1) I am trying to place my current funds in liquid investments where I can pull it out when I am ready to purchase(2) I have contemplated using a HELOC or Cash out refi in order to assist in the purchase of a another home.