Advice on 2nd B&H Rental and Best Way to Fund Down Payment

[Scott Hawks]

Brand spanking new to owning rental property. Just started renting out a SFH that i inherited and has no mortgage. Looking to acquire a second property by the end of the year and i have some questions and am looking for some advice/guidance on how to fund the down payment on the next property.

So, my first question is what kind of numbers should i be shooting for on monthly cash flow and CoC ROI? Best i can tell, i should expect to cash flow $100 - $150 per door? And CoC should land somewhere between 7% - 15%? (i'm using the BP Rental Property Calc to get the numbers)

I've been looking at properties around my area, and most of them are going to need a ton of work to get move in ready. Inventory in my area is very low, so i'm struggling to find properties that produce reasonable monthly cash flow and CoC (based on what i believe to be good numbers). That being said, the property my current rental sits on the lot runs through all the way to the road sitting behind it. about half an acre is empty and is big enough for a SFH or a smaller duplex (2 unit 2/2). I'm considering building given i have the property available. I know it's more expensive to build, but also would be less maintenance at least for the first 10 years or so since its a new build and i could get more rent for a newer unit(s). Just looking for some feedback on the buy/rehab vs build new.

So, i'm looking at 2 options for coming up with the down payment on the next acquisition. 
Option 1: Refi current rental and get cash out. 

Option 2: Pull some money out of an inherited IRA

My thought process here is this. I have fantastic cash flow on my existing rental. I'm kinda thinking of it as a sort of safety net cause i can bank so much of the cash flow and still pay myself about $150 month while building reserves for things like vacancies, maintenance, and cap ex. Again, just want some feedback from the community as i'm sure someone has been in this situation before.

Thanks!