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.

Whether you are a veteran looking to buy a home or an investor seeking the right funding for your next deal, I am here so put me to work.  

Looking to buy Business around Portland metro below $300k.

Will you continue to buy in that neighborhood with your next purchase @Teslim Salami?

I did not come back to revisit this post from so long ago.I did not buy this property. 

We ran out of time which caused us to buy a couple properties we probably shouldn't have at the bottom of our exchange list.The better ones were sold before we could buy them. 

That said, I’m assuming that someone must be buying these wholesale properties.  

This is especially true if you're trying to buy in the best location possible.

buy 1 rental. 

A lot of agents don't want to have to educate someone who is broke and has dreams of financial freedom through real estate just to find out you can't buy.