Existing equity as collateral

[Bela Demchouk]

Hello Bigger Pockets Geniuses!

Please give me your opinion as I am very new in this.

I have a SFH worth 250K at least, owned free and clear. I am trying to rent it out, my first time doing it, so doing repairs according a post rental license inspection checklist that the inspector left me.

I want more properties, but I don't want to let go of this one as the rent should pay my new mortgage (or a lion's share) on my primary residence. 

Family pushing me to sell it and use money as down payment on something multifamily that would be easier to rent with bigger cashflow. (5BR SFH ~~ $2.3K or (2BR+2Br)MFH >3K)

I want to use the house as a collateral for downpayment instead.

The way I see it, if I don't sell and use as collateral:

Pros:                                                                  |                   Cons:

Keep property | Less cash available (65% LTV vs 100% if I just sell it)

Keep collecting rent                                               |     Keep managing the property (repair costs, vacancy risk)

Keep all of the appreciated value as the years pass |     ??