leverage Paid off Condo vs Mortgaged primary home

[Mike Clayton]

Good Morning my BP family, new to BP. I currently own a condo that I bought as a foreclosure for 21k cash after closing 10years ago with the help of my father. My sister is currently staying at the condo and she takes care of the HOA and taxes and any major repairs until she buys a place for herself so right now my cash flow is zero. I own a primary single family home with my wife that I bought for $143k in 2013 now worth approx. 175K and I now owe 125k. I am ready to grow into my real estate business and would like to buy another condo to do short term rental with.

Now my question, I was thinking about a HElOC loan to use as the downpayment. should I use the HELOC from my primary resident or should I tie up a condo that I own free and clear? The second option make me kinda nervous especially since my dad help me in obtaining that property.