Rental property purchase

[James Wayne]

Hello everyone I am new to biggerpockets I am looking to purchase my 2nd rental this one is 2 blocks away from a college in the Philadelphia area.  My question is would it be a wise move to pay off my first rental with a Heloc from my primary home and money from my 401K.. Then do a cash out on the 1st property to purchase the second property. 

1st Property Mortgage:40k  (property appraised value = 110K) this will allow me to pull $82500 cash out minus closing cost 10K. ($82500-$10000-$40000)= $32500

Cash Out Cash: $32.5K

Money from Heloc: $20K

Money from 401K: $10K

Total to purchase: $62.5K

2nd Property purchase price 60K

Thanks

James