Second property options

[David DePriest]

My wife and I recently moved and bought a new house to live in with our children. Rather than sell our old House we have been renting it out. This property is nearly paid for with only about 10,000 dollars outstanding principle. The house is worth about 150k-160k. I want to invest in other properties and build a renting portfolio but I don't have the cash on hand for a down payment on another property. So the question is do I sell the first property to finance the buying of others (my renters have asked if we will sell), borrow money against that house, or wait and pay this one off to improve the cash flow there and save and buy the second property in a year or so?