Financial - Steps towards 2nd property

[Dan Shulda]

Hello BP family, need some help, guidance, input; 

I purchased my first rental property using my HELOC that allowed me to buy the home outright, same as cash. Now I want to start working toward the purchase of my 2nd rental property but have some questions. I have about $50k left on my HELOC, and I have the property that I may be able to leverage, but I am trying to find the pro's and con's of using the full $50k as a down, getting a mortgage, or trying to leverage the equity in my 1st property.

Any guidance would be helpful.  I am trying to cap my next purchase at about $300k with a monthly return of ~$400 (have not found a place as I want to make sure my financial plan is solid before moving forward.

Thank you in advance