Free & Clear vs Bank Loans

[James Hunt]

I currently own a SFR that is cash flowing really well. I'm low on capital, but on 1/8/19 I will be able to cash out refi when a grant expires on the property. I'll have two years rent saved in addition to the cash out money. My first thought was to use the 18k across three properties, all under 30k. An older investor suggested I buy a home free and clear instead. Thoughts? FYI Invest in D class areas in Cleveland.