Second rental property - worse return, better potential for value

[Brandon C.]

I've have had a rental property in Georgia for a while and we are pretty happy with it. $50k paid cash returning $700/month and has already gone up in value due to it being in an area with some good developments. I'm assessing another property and it doesn't appear to be as good of a deal ($80k $900/month) but in an area with exciting developments and higher potential for increase in value. I know there's a lot to be said for cash flow returns, but how important is increase in home value and how do you assess if it is worth it?

I'm also starting to realize I may have been naive to buy the first house all cash. I have enough to buy the second all cash (just sitting in a 1.6% ally bank account at the moment) but i'm wondering if I should leverage my money and try and get a conventional loan or possible some kind of HELOC on the value of the first rental. The thing is the second house is through a broker as cash only. Can you get a loan and buy a "cash only" house with it somehow?

I definitely have a lot to read up on the financing portion of the business this week. Thanks for any help in advance.