With this rental income, our income, and two side gigs I have (tutoring and playing music) we are easily able to save 3k / month and we don't know where we should invest it.Two months ago we built up our emergency fund, then dipped into it for a dental emergency (thank god we had it), and now it's back to where it needs to be.

Mainly markets that are emerging primed and ready for reposition mainly targeting affordable housing which will ALWAYS be a need in this country.

If the lender is asking that you have 6 months reserves they do not want the cash out refinance to part of that because you should be able to show the lender that you have enough money in the bank should an emergency arise to cover 6 months of mortgage payments.

I like to use the HELOC primarily for repairs and emergency funds.

You just have to make sure that you have emergency funds incase something happens, you have to make sure you can afford the home and not over leverage, you can be creative and force equity into the home with renovations, additions and extra units to hedge against a market correction, and we all have to decide if we will own for the short term or long term.

In the ideal case, there be a "new California" emerging somewhere in the next 10 years.

@Joseph Matarazzo- thanks - most heloc lenders  wll NOT  lend on investment properties  ......as  your  rate is  very low on the  1st mortgage - you will not want to do a  cash out  refinance  on the  3 plex  ( unless  its an emergency and its the only way you can get the cash you need) ......the are some HELOC  rental  property lenders  that  are  out there -  you might  check  with the smaller  to mid size  banks and  credit unions that are located near the  3 plex  and  you might also  check with the bank you do  business with 

Hello BiggerPockets community,My name is Matt and I am a Florida Real Estate/Business Attorney, Realtor, and emerging Investor.I have a great deal of experience in the real estate industry including real estate litigation, residential and commercial leasing, joint ventures, zoning and land use, commercial and residential sales, and private lending.I am self taught as far as my knowledge of real estate finance is concerned and haven't yet pulled the trigger on my first deal. 

Depending on what we find, we'll call the emergency contact after looking in the house. 

I do have a Heloc but have already used a good portion for two other rental properties that I purchased and would like to leave some room for emergencies.