What interest rate are you getting?

Just make sure you’re comfortable with the interest rate if going either route.  

Hello,I am a real estate investor located to Southeast MA, I own and manage a small portfolio of 23 units and am looking to expand and scale out of state as the returns and market have been quite difficult in my area: due to CAP Rates, specific building class I am looking to invest in, and rising interest rates/minimal inventory, as well as it would be nicer to be diversified and in a more landlord friendly state.  

I don't do this for a living and have no real world experience, but at 40% down, even with a 7% int rate, that seems like a high monthly payment.

So I have my house that refinanced in 2020 for a 15yr 2.5% rate and we have about 56k equity.

In this case, you can use Rental Income from the units that you will not be living in and that income can count to help you qualify.FHA rates are going to be lower than conventional for you almost always, but FHA does have a 1.75% funding fee. 

To decrease the amount of money you pay out of pocket you could turn part of the home to a STR or MTR.

While I have a fantastic rate, the co-owner's giving me the option to refinance or he'll force a sale.

I bet the rate of Engineers going homeless is all but 0. 

The more you pull out the higher the rate.