How best to use $650-850K Equity in my personal Home to buy an income property?

[Casey Spence]

Location: Boise Idaho Market

Current Pay-off: 348k (does not include the 77k HELOC below)

HELOC: Owed 77k (with a 9.74% variable interest rate)

Current Monthly Payment (Including Taxes and Insurance): $2411

Term and Interest rate: 2.99% at a 30 year term 

Current Value of the Home (What it would sell for) $1.2 million

Personal Backstory

-Married with 6 kids (still at home) / 45 years old / Self Employed Plumbing Contractor 

GOALS: 

-Retire in 15-20 years with multiple Income producing Properties in my portfolio

-Be able to quit my day job and Focus on my Rentals

-THE BIG QUESTION:

-How should I use the equity in my home to purchase a rental property?

-Should I rent out my home and refinance (Rents would be $5000 per month)( (and of course my family would in turn need to rent somewhere Approx $2500/month)?

-Should I Sell and collect the equity to use for a cash flowing property (This would leave my family without a home, but would free cash for investing)?

Any advice is greatly appreciated!