How to Optimize Investing with a HELOC

[Jason L.]

I own a couple of units in the Tampa Bay area in Florida (I am a long distance investor, as I live across the state), and I recently took out a $95k HELOC against one of them. I've been trying to think about how to deploy this money. I'd love to just buy something in cash with it (gives me leverage as a buyer and wouldn't need to pay closing costs on a mortgage), but with all of the appreciation Tampa Bay has seen the last few years I'm skeptical I'll find anything that isn't a total dumpster fire. I can think of 3 realistic options on proceeding:

1) Put up a little extra money out of pocket to buy something in the Tampa area. Would prefer not to but it's not a nonstarter.

2) Consider other areas where houses are cheaper to make this work in cash. Would hit my specs on price and buying cash without needing to put up any personal money, but I don't really have a ton of good ideas on where and I lose any economies of scale I have by not continuing to invest in the same region.

3) Use the HELOC to fund a down payment instead of buying entirely in cash. I can buy something larger (probably another duplex), but if I'm funding a down payment with interest then wouldn't this basically be the equivalent of being 100% financed?

Any opinions or alternative ideas?