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.

I feel as though your buy box puts you in a position for more flexibility. 

Quote from @Angel Romero: You'll get plenty of advice on what to buy, where to buy, how to cash out equity, setting up an LLC, and other noise.

Quote from @Jesse Rivera: I disagree about buying in CA.

If you are just starting out, this is for you:When you buy an investment property, it is treated differently than a house you are going to live in. 

2) You have one rental now, what's your goal of buying more?

Quote from @Atif Khan: Hi, new here. i just finished building my first spec homes out in granbury tx and was looking to buy a few more lots around dfw metroplex.

The Assessor's Office is doing an assessment on it to determine the new assessed value.

Quote from @Jerem Kaawaloa: I have spent the past 20 years working in health care and have only ever purchased properties for my own use, including a home and office.

@Keyshawn Johnson I'll connect via messages, but for the broader community:• What should I know about buying property in Destin?