Should I buy my second house w 30k in bank?

[Drew Slew]

Financial picture: 

I live in the NYC area, union city area. Just bought my first house, around 150k in the summer. 

3.5% 30yr fixed mortgage, 780 total monthly w tax, plus HOA. I rented room so live free.

New money has piled up quick, so have around 30k again just like when I bought the house.

Income around 80k, great credit, just got student loans and this house for loans. Id say i can stash away 3k a month with partying and having a good time in manhattan w my avg incomes.

My questions is: 

- now that i have some cash again, and my goal would be to start having passive income from rent, what should I do? Ideally next move should bring in $300-500/m cashflow NET, ALL months. I know the 100-150k area is quite measly around here, but i def see potential and many of jersey city/union city is quite unknown. Just been to newark too, could pop really big although not sure id walk around even in daytime.

I read so much about creative financing, people putting 10k down or nothing down sometime, buying 5+ properties in months etc.. hard to decipher whats a good choice. 

HELOC? Borrow against current property? Ideally replicate this condo? Is it too soon to buy, is there a 1 year period or sthing? 30k shud be ok for anything around 100-120k. Will interest rate and downpayment be much more on an investment property? Can it be played right that somehow both remain my "primary residence", no tax etc?

Need to be here around NYC, so im not thinking of middle of nowhere good deals detroit iowa florida etc. 

Thanks for any ideas.

[Kevin Moen]

Buying a property with cash is the worst advice you could receive. That is not how you build wealth. What loan did you use to buy your first property? FHA? Conventional? If you move out of your current place and rent it, what is the net cash flow?

Why not buy another owner occupied property with an FHA or Conventional loan, and continue to refi and repeat? Im making over $2500/mo NET on three properties by doing that model. Its a real wealth builder for us young investors who can afford to hold long term, and use smart leverage. Be sure you net at least $300 - $500 per month after PITI, market vacancy, and repair allowance if you are using leverage aggressively.