How to use my investment property to buy primary residence

[Cynthia Perez]

I recently purchased my first real estate investment property through a Tax foreclosure auction for approximately $70k. I used just about all of my savings to do so considering this has been my dream my initial plan was to purchase my investment property fix and flip and ultimately use revenue to invest and purchase the next and buy my primary residence. As many first time investors I have discovered several dilemmas along the way. The property is a seasonal and may require a bit of money and work to change to a year round residence after speaking with the individuals who reside in the home they informed us they tapinto ther in-laws septic system that resides next door and once they leave they will be sure to remove it. The home is in a nice neighborhood and all of the neighbors are considered year round homes. The property was auctioned off with people residing in the home who refuse to leave and claim to have relation to the prior owner who has passed away, they have declined the offer to stay and rent out the home and are currently in the eviction process. My ultimate goal is to continue to buy real estate and flip I have recently considered fixing and renting out the property considering the renovations it entails to sell the home right away it is worth approximately $200k fully renovated. 

I have had my eye on a quad plex for many years that has just hit the market and requires a significant amount of repairs as it has been vacant for over 10years. I realize this will take a significant amount of money to renovate and time. I am beginning to get inpatient and would like to seek my primary residence sooner although considering my DTI I may have a more difficult time qualifying for a traditional mortgage. In the meantime, I am working toward paying down debt to use this property as collateral to renovate the existing investment property and have some cushion to decide whether it is a good time to reinvest in another flip or settle down and buy a primary residence as I am currently renting a mother daughter that is family owned, I was recently given the opportunity to combine the mother daughter and gain additional square footage and extra bedroom/ bathroom, although the renovations and layout will still remain a bit uncomfortable and costly, if I can combine the existing living space I have now for another year until the investment property is renovated and my debt is paid down I may have more options in obtaining a mortgage against that property and obtaining one for a primary residence.

I would like to know how I can use this investment property to obtain a loan to either purchase the quad plex or buy  a primary residence using this home as collateral and any general advice from new investors starting out and recommendations. I would love to relocate we have been residing at our current residence for the last 10 years and are ready to expand and grow our family, the investment property is not a location that would be ideal for us to use as our primary residence it is an hour from our existing Businesses and work. We both own small businesses in our community and I work as a Nurse part time, we currently have no real estate experience. So I'd love to get some advice guidance and insight.

Thank you in advance