Advice on using home equity to scale

[Lucas Vanroboys]

Hi! 

I have a fully paid off 3 bed, 3 bath property from an inheritance that is my primary residence. It is a single unit in a duplex complex in South Boston and I collect rent from 3 tenants that live with me that generates a very strong solid monthly cashflow. I want to grow my portfolio using the BRRR strategy in multi-family (2-3 units) or small commercial (3-6 units) properties starting with the equity I have sitting in my house. With this goal, I have been collecting advice, input, and recommendations over thee past few months on the best way to access the money and execute my plan. Any and all advice is welcome!

Here is a bit of background on my current situation:

I am a 24 year old graduate student and do not have 2 years of income verification from any W-2's. I do however have rent income from my current property (just over a year now) and small amounts of self-employment income from a side-gig business I have been running for the past year. I say this because this makes income verification for the loan approval process at traditional lenders difficult from what I have been told. I have heard something about exceptions for students but from my initial research, this is contingent on a job after school in the field you studied which is the next part of my story. After I graduate, I plan on pursuing a career in professional hockey which is not necessarily the field I studied in school! The income from this is contract based which may complicate this process as well. 

I guess my question is what would be the best way to access the equity in my primary residence. From other conversation I have heard about HELOC's and Cash-Out Refinances but am struggling to differentiate the two.

Then, once I have the cash, what kind of financing options would I be looking for the new property? I have always had in mind a house hack with an FHA loan by moving my primary residency to the new property and turning my existing one into an investment property, but then I have also learned about "Underwriting Description" where loan officers will flag my move from a SFH to a multifamily.

I am looking to make my purchase in the spring as I will be done school and have the time to rehab and manage the property full time. Then I want to have the p[roperty rent ready by the end of summer or early fall so I can more passively manage while playing professional hockey. As you can tell, I am trying to nail down my financing plan and options first but maybe this is the wrong approach too? 

II know this is a lot in one post and any response will be greatly appreciated!