Help with a decision

[Anthony Hilliard]

We currently own 2 homes, a 3/2 and a 1/1 on the same lot, ones our primary residence and the other we moved my grandparents into.  They are getting old and need to be with us. 
We got a great deal on the home in 2021 and currently owe $164,000, 3.5% interest, we just got a BPO and it appraised for $355,000. 
we are tapping into the equity with a HELOC.

We want to make our first move into real estate investing but not sure what options to take and I'm looking for advice. Ultimately our end goal is to own long term rentals. 

- Buy and Flip using our HELOC to raise capital to purchase long term rentals

-Purchase another primary residence to use our current two properties as our first rentals (est. $2,000 a month in cash flow) We still have an FHA Loan available, purchased our current property conventional.

-BRRR using our HELOC

-or just start buying, turn key/TLC rentals to hold

-seems less desirable to me. $50-$60k Reno cost into our current residence and flip them for an ARV $500,000

[Melissa Justice]

@Anthony Hilliard,

You’re in a strong position--low interest rate, solid equity, and options on the table. Here’s a quick take on your choices:

Best Option for Your Goals:
Start with a turnkey or light-renovation ("TLC") rental using your HELOC.
Low stress
Immediate cash flow
Builds landlord experience
Keeps your risk low while you learn the ropes

Markets like Indianapolis, Birmingham, and Memphis offer turnkey rentals in the $120K–$180K range, with property management in place and $250–$400/month cash flow per door. Your HELOC can fund the down payment or even full cash purchases depending on the price.

Other Paths to Consider:
BRRRR – Great long-term wealth strategy but can eat up your HELOC quickly and has more moving parts. Consider once you've done a deal or two.

Buy a new primary + rent your current units – Smart move, especially if you can get $2K/month in cash flow. You get to keep your 3.5% loan and convert your home into an asset.

Flip to build capital – High risk, time-consuming, and very market-dependent. If your end goal is buy-and-hold, this could distract more than help, especially with a $50–$60K reno cost on your current home.

Bottom line: Use your HELOC as a launchpad for a cash-flowing rental in a landlord-friendly market. Start simple, stack wins, and scale up. 

Let me know if you ever want to chat specific markets or deal scenarios --always here to help!

Best of luck,

Melissa