Hello there need some advice/recommendations

[Chris Walters]

Ok so I am interested in getting into investment properties, I am 29 years old, and currently own 1 home that is being rented out that I bought a few years back on an FHA loan, and just bought another home that is 2700 sq ft as my personal home for me and my family few months ago. I wanted to go the great route of buying a multifamily building and living in that, but with 4 kids, wife,cat,dog, and myself it just wasn't going to work. So my problem is my first home only has about 14-15% payed off, so I can't pull out a HELOC. I have talked to loan agents and most don't do loans for under 50k so that takes that out of the question as well. I can put the 20% down needed, but I was informed that interest rates are much higher on investment property loans which I wasn't aware of, and a few other things I was told that shocked me and seemed it's not worth it unless you have cash to buy property outright .

any suggestions how to get started? Or do I have to suck it up, wait, get a HELOC on my other property, take a loan on my 401k and buy some small homes cash when the time is available?

thank.you in advance for the help if anyone can give me some direction.