HELOC/Purchase guidance needed.. under construction

[Christos Philippou]

Hello everybody, total new guy here, so let's get the eye rolls started haha.

Just had a few quick questions about a specific scenario I am running into with my recent RE endeavors. I purchased a property from my father in-law 6 months ago in straight cash. We did repairs on it, made it beautiful, and now my contractor lives there. We have 4 units and it's been a great time. It's bringing in a lot of cash flow and I am looking to get into another property.

Now, I am looking at purchasing another potential multi family. It is a total project, the only thing that has been done is plumbing, electric, some duct work for AC, and the foundation and frame of the house. It's completely open and has support beams holding the structure up. We will need to do the flooring, dry wall, build the baths and kitchens, everything.

I have a few different options here I guess, wanted some feedback and possible guidance on some pros/cons. 

1) I have been doing some research to try and find out how to possible get a HELOC on my rental property that I have now. If I could get a HELOC from that property, I would be able to purchase the second property in cash and pay for all the repairs in cash too, huge win.

I've been reading all over ,this is very difficult to do, as most banks and lenders will not give a HELOC off a rental property. I have read a few places about a cash out refi? Can somebody give some feedback on that? Keep in mind our current rental is 100% paid off.

2) Can I get a mortgage for this building while it is under construction? If so, I can get a small mortgage (purchase price is about 40-60k) and pay for all the repairs out of pocket no problem.

Any guidance/advice on how to leverage my currently rental property that is 100% paid off to purchase a second would be great, thanks guys.

Christos