How to pay for my next house. WWYD?

[Joe M.]

So this is def still a newbie ish question...but trying to figure this thing out one step at a time.

Here is my current situation.  Would love to hear what you would do and also why you would do it so I understand your reasoning.  Hopefully I provide you enough information.

Current renting out my old primary residence (I have only been renting it out a few months now and hoping to keep it as a rental long term).  Its worth about 120kish and I have about 55k left to pay off.  Have about 80k saved up in savings.  Currently living with soon to be wife until we find our house we would like to buy.  That will probably be in the 200k range give or take 20k.  Im not well versed how HELOCs or refinancing works, or even if anything applies to our situation.  

But to you veterans out there, how would you pay for a new primary residence and why?   Thank you in advance