What is the best way to source cash from current properties to purchase/acquire further investment properties?

[Chootar Laal]

What would be the best way to invest by sourcing cash to purchase additional condos/multi-family properties? Here is my position.

Single Fam: $315k (balance), $700k (value determined using recent sales comps and houses on market)

2-Fam: $475k (balance), $800k (value determined using recent sales comps and cap rate of 7%, buyers in my city would trip over themselves to acquire a 7% cap rate property, so its a conservative value projection).

From talking to local banks, I have the current HELOC rates:

2.74% (only cost is $370 appraisal fee), amortized 30 yr. for the single fam.

4.5% ($1800 closing cost) for 2-fam.

Would it make sense to get HELOC from both above properties and buy in cash? If I purchase a $300k condo, 2br, it would easily rent for $1800/month. Or do I use the HELOC to make down payments on other properties and do investment mortgages? Those are:

3.99% 5/1 ARM 80% financed 2%/6% (condo/single-fam)

3.99% 5/1 ARM 75% financed 2%/6% (2-4 fam)

Thanks in advance.