I am trying to leverage my home's equity to access investment funds but I've run into a road block.

Once the 1031 exchange is completed (again assuming 1031 compliance), I am free to leverage the property in any way, without any 1031 restrictions.

We do have access to a HELOC on the property which we leveraged to purchase our current primary residence (balance borrowed has been fully repaid at this point) but we would rather not pull that lever to roll into a new property given current interest rates and the adjustable nature of the HELOC. 

There is no reason to buy your own first for experience purposes - and the fact you already live there makes it 'owner occupied' if you end up going with traditional bank financing - which will give you better rates, and access to more programs. 

@Heather FultzCondos can have the advantage of the maintenance of the outside taken care of but can run into issues with HOA and restrictions on STRs that you can't control. 

When considering properties, focus on accessibility to popular attractions and amenities, as these features tend to attract more renters.

These cities can easily have more restrictive landlord policies than a red area in a blue state (like Colorado Springs for example, probably less restrictive than any of these cities). 

Additionally, Parma's proximity to Cleveland enhances its appeal, offering easy access to urban amenities and employment opportunities without the higher living costs associated with larger cities.

Do you have access to private equity investors or/and key principles and co-sponsors with a track record?

As page 1 of the lease states- "This form lease is provided as a member service by the Chicago Association of REALTORS and is restricted to use only by MEMBERS of the Chicago Association of REALTORS and those who are party to a transaction facilitated by a Chicago Association of REALTORS member."