@Hank Bank BRRRR is probably want you want to do.Buy, Renovate, Rent, Refi, Repeat.Before you go all in and either find out you don't like being a landlord or you make costly mistakes, start with just the next one.You'll have some challenges with tapping the equity in the townhouse:1) What loan amount can you qualify with your credit & income?

Here in Chicago, you should expect a range from $200-$275/SF, depending on the location, experience, labor, and material finish level.Are you in a position where you already own some land, or what is your current situation?

I think real estate is very forgiving (1) over the LONG term and (2) if you're well capitalized / in a strong financial position. 

If you’re comfortable with the process and local regulations, new construction might yield higher equity, but for simplicity, an existing duplex is safer.

I have over 1 million in equity....doing nothing, in just three alone.

We have a lot of equity here now.

It may vary from others' advice, and it will be up to you to determine what feels best for your needs.In your position, it is super smart to rent first. 

There are tons of filters you can use including out of town owners, single family, multi fam, equity percentage…etc. https://www.melissa.com

However, I had to subordinate the sellers note to 2nd position (hint: set up that language in advance to streamline the process, if that's the direction you're going to go).Since the ARV was high enough, and the potential income would support the mortgage and expenses, it all worked out. 

Part of the equation is how much equity can be drawn from your property as well, this would also be a question for your lender.4.