How to best utilize $175k of equity?

[Tom Cotter]

Hello BP,

My current situation:

I live in Northern VA, I have a rental property here with about $175K in equity and have my primary residence with about $60K in equity. (These numbers are base on my principal balance against "Zillow's Estmate" not sure how accurate they are.) I'm trying to determine the best avenue to take in terms of my next move in real estate. The rental property for $175K equity has decent cash flow, and my primary residence at $60K equity, I'm renting out my basement.

Ideally I'd like to continue to buy rentals where I can generate cash flow and build equity. 

To do this, I'd like to use the equity from my rental property to purchase another rental using a Cash Out Refi loan, then use the rental income to pay off the Cash Out Refi loan. Then pull the equity to purchase another rental, (using the BRRRR technique).

I'm looking to buy a rental property out of state due to the price point and rental income ratio. I'm currently looking to buy in Cleveland  (OH), Memphis (TN) and Huntsville, (AL)  cash from the equity I can pull from my rental in Northern VA.

The reason I'm not looking to buy a rental property in Northern VA is the price point is too high for the rental income.

If there is another avenue to take someone can recommend to get a better ROI, I'd love to hear it. Hopefully this thread can help others in the same predicament I'm in.

Any insight would be greatly appreciated. If there is a lender that has worked with investors in this specific area, please feel free to PM me.

Thank you,

-Tom