New to BP! Looking to do my 2nd deal and wanting advice!

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Hi all! I bought my first condo when i was 22 with my mom as a cosigner. I have that property rented in Colorado and am now looking to buy my first single family with rental potential. 

My idea is to buy a single family home with a finished basement and some sort of other ADU (finished garage, separate rental on site, etc.) and rent out the basement/rental/garage while i live in the main property. I'm look in a touristy college town with approximately $200K people so I think the rental market will be good. Right now the properties that fit this criteria are between $350-$499K (~$176 per sq/ft).

I have $40K (liquid) in savings and I'm *thinking* that what i want/need is a conventional loan with 3-10% down. However, I don't really want to touch my $40K. I'd prefer to keep it as a cushion as it is my only savings. I'm thinking about a HELOC on my Colorado condo for $70K for the 3-10% down payment plus a little extra for renovations.

I bought my Colorado condo 11 years ago for $140K and now it is appraising at ~$270K. 

THANK YOU!!!