@Rory DarcyRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Your best route might be to buy a 2 to 4 unit property that you can live in and rent out the additional apartments.

Investment Info:Condo buy & hold investment.

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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.

If you learn how to use Hard Money loans properly and how to find good deals in need of rehab, there are plenty of areas of the country where you could buy 3-4 rent properties in solid middle class areas with good cashflow.

I use Eric Kloth out of Redding and he is stuck with us for this and our future home buying needs. 

Many investors opt for building broker relationships when buying 100+ unit properties, but it also takes time to build a relationship with the broker. 

And it sold for more because I was accessible and right there walking with them in their buying journey. 

I asked which building inspector was the most thorough, wrote the most detailed reports, and which was the one he’d use if he was buying his own property.