Ready to buy second deal but need advice

[Ryan Chorbagian]

Following up on my last post here. In the spirit of brevity, I'll bullet poi nt my current situtation:

-House hacking a 3-flat in Chicago; the rents pay the mortgage and I profit 40 dollars a month

-If I move out, the building will cash flow about $1000 per month

-Purchased using FHA financing 3 years ago

-Refinanced out of PMI a year ago

-A year ago, the house appraised for 60k over what I paid for it

-Have about 70k in equity now

-Planning on holding onto this property for the cash flow

I want to use FHA financing for my next deal, which I will move into and hack similar to my situation now. Should I use the equity I have in this place and borrow against it to get the down payment on the next property? What are the pitfalls involved in that strategy if any?

Is there a better strategy I'm not considering?    

Any questions that will help clarify my situation please ask.