Need Help Taking the Next Step - Financing Wizards Needed

[Jon Quijas]

Hey Team,

My wife and I are teachers/trainers and novices when it comes to real estate. We own two properties (1 rental and 1 primary residence) in one of the hottest real estate markets in the Bay. Wanting to invest, but have little cash. Open to advice and "What you would do" discussions".

Property One (condo rental) 2 bed/2bath:  (Excellent buy)

We Owe: 215K (approx.) on it

Property Value: 475K (equity: 260K)

Tenants ALL of the expenses + give us $571/month (6852/year)

HELOC: We borrowed 30,000 to purchase another home (we owe about 28K on the HELOC)

Property Two Townhome/Condo (Primary that I would like to eventually rent out) 3 bed/1.5 bath: (not too shabby buy)

We owe: 406K (approx.) on it

Property Value: 516K (maybe more as a  2 bedroom just sold for 510K)

My wife and I would like to invest somewhere out of state, and buy and hold a 3rd property. What would you suggest to come up with 15-20k for a down payment for another property? Pull from the current property (in the middle of trying a refi on the Property 2) if that's even possible? Or would you try to pull from property 1? Finance experts, I appreciate any help that you can provide. Trying to get to that next step and feeling stuck.

Kindest Regards,

Jon