I’m trying to buy a second multi family.

Quote from @Jaycee Greene: @Orlando Johnson Are you still looking at buying this property?

I have about $400K to deploy, but would prefer to buy several duplexes rather than 1 more expensive building.

You have to make a deal rather than buy a deal, be more appreciation focused, and be more patient.

With pulling out your equity (or selling), you can diversify and buy more.I did sell one of my places and used that money to buy two others. 

I’m looking into buying a rental(s) in this area.

Can you buy a house and be within reason of what your current rent? 

Quote from @Jimmy Chao: I am weighing some options to help my younger brother buying his first primary with a fixer.

I would suggest you do both of what you suggest - meaning get either a new mortgage (more conservative route) or HELOC on the townhome and use those funds to buy your next investment property.

I feel as though your buy box puts you in a position for more flexibility.