Jedd as always please seek professional financial advice before you do any kind of investment, and ask that adviser if they are practicing what they are preaching. If not, then I wouldn't follow any advice they don't follow themselves.
In my own opinion, you are best to leverage the equity in your property to maximize your returns. Self-direct your IRA and use any equity in your current property via 2nd loan or credit line for investment or potential 1031 into income producing property in an area that has the potential to appreciate. Buy right, manage right and finance right. Don't invest in markets that are too hot where you may overpay unless you know exactly what you are doing. If you are risk averse then keep higher equity, that will diminish your returns, but limit your potential risk. Your strategy should be leverage and grow your portfolio. You can then increase the equity in that and move more toward cash-flow later. I would also suggest going multi-family and go for more doors and find a good property manager to manage. Don't be an accidentals landlord if you plan to do this as a Business. Just my 5 cents.
