I am not sure if that equity is best used as a refi or heloc in buying our next rental or should I forgo both for traditional financing and hope to save the 25 percent or so first?

I’m a RN with steady income and have been employed for going on 5 years in my field.

Ideally I don't really want to do this since it will severely limit my ability to continue to purchase additional properties which is really my reason for going this route in the first place.

If you forgo the opportunity cash out on your home.

I have been in the local investing scene and community for going on about 10 years now.

@Song ChoeHere's a link to Virginia's laws regarding return of security deposits.  

If you're not interested in redeeming the property and selling it for more than the overbid (most money for you), some states do allow you to forgo the statutory redemption period.

Some would say to sell and forgo the 1031 to keep your powder dry for bargain hunting in a correction. 

@Roy Means While it is possible to find a private/hard money lender that would be willing to forgo the monthly payments and just let them accrue until you sell or refinance the property, that is not the norm. 

@Jeremy Hester Another reason for going more professional is that the software will send out the reminders that rent is due if the tenant has not setup automatic payments.