How best to leverage my assets

[Trudy Homer]

Hello, I am a newbie looking to dive into the world of Multifamily Real Estate Investing and not sure the best way to leverage my assets. I inherited a fully paid off single family home in the Bay Area valued at $1M that I am renting for $2850 a month with ~$1500 NOI.

My question is, should I: (A) take the cash flow from this property and save up to afford a down payment on a 2nd property, (B) Refinance my house and purchase an additional property outright, or (C) Refinance my house and put 20% down on multiple properties (or perhaps a higher value property)?

Mostly interested in looking into buy & hold, multifamily properties, out of state.  

Thanks for your input!