Leverage / Using equity

[Bob Mims]

Hello,

I own a 2BR/2BA townhome.  Since Jan. 2015. I have $35,000 equity. AROI is 15.14%. All in payments are $536/mo. Monthly Cash flow is $439/mo. (no reserves) 

Is it a sound investment to use $25,000 from existing TH to purchase a larger 3BR/2BA with $300 + monthly cash flow? 

What is the best strategy for buying another unit? Thank you.