Improve primary home to get a larger equity line for investing?

[Deacon H.]

I'm starting out looking to get into multi-families and larger apartment complexes. 

I have some cash which could get me into  some 2 or 3 families but if I had more cash I could get into some 10-15 unit apartment complexes.

I'll use nice round numbers because it's easier.

Let's say I have 100k cash.

I have the ugliest house on my street...and live on a very nice street and in a nice area.

Houses around me sell for 600k. 

I bought mine for 350k and put 50k into it when I purchased it. It's likely worth 475k now.

I'm toying with the idea of putting anywhere from 50k-100k into the property 

My target would be to get the house to an appraised value of 650k which would give me about 350k in equity

I would then take as much of that 350k as possible via an equity line and buy a larger apartment complex than I could otherwise afford with my 100k cash.

Is this a horrible idea? My assumption is with the larger apartment complex is that I could cashflow better than with a smaller multi-family and would be able to service my equity line debt. 

I guess the 2 options look like:

* 100k cash + equity line of 175k

* renovate my house and have 0 cash available for investment + equity line of 350k