Personally, I’d use it as a down payment to expand my rental portfolio, tapping into financing to acquire multiple properties for better diversification and cash flow.

But then I was tapped out on access to funds, so I switched to creative means, obtaining the next 3 properties via lease-options.

Hey Justin - One option is a cash-out refi, which could help you tap into your 15% LTV to pay off the HELOC or fund new investments.

Rates are typically higher than a traditional cash out refinance, however at least you are not getting the full loan amount + you have the flexibility to draw/tap in the money whenever needed.

Leverage Your Equity: By refinancing, you can tap into the equity that has built up in your properties without having to sell your properties and incur capital gains taxes.

I think I would rather have options than be tapped out and trapped in with 2 properties.  

I am new to RE investing, and hoping to tap the collective power of this awesome group in starting my RE journey.

I believe there maybe a few different ways to tap the equity in my 1st rental, but my concern is that if I take out the equity for a new purchase, I'll be reducing the cashflow of my business due to the additional debt repayment.

., you are capitalized at something like 250k and somehow got loans on the other 3.2-3.4MM For ease of the maths: If at the start you were to take your 200k and put down payments on 1MM worth of property (assuming zero closing costs, prepaid escrows, etc.)... you're tapped out. 

By replying to those texts and mailers, you're already tapping into a potential lead source.