The documentation that my lenders require are typically tax returns (last 2 years), rent roll of all properties, personal financial statement, and leases on the subject property. 

These are the relationships that will propel all of us on the road to financial freedom !

My role beyond the financial investment is property management.

I have mad a series of smart financial decisions over the last 10 years that have put me in a great position to go out on my own and take this on as a full time career. 

Is the goal with rental properties to create immediate financial freedom, or is it to provide for retirement as part of a diverse investment strategy.

We definitely need to make some connections on the financial side so we have the ability to grow more quickly. 

If so, then financially speaking you should access that equity.

Top two things to do are to:educate yourself on the different aspects of RE, figure out what makes the most sense for your life goals, and to pursue a deeper knowledge of that areafigure out your financial situation because that will dictate what you can/can't doI guess that was more than two things...

We would like to purchase a SFH in the area and my question is this: In the long run, what would be more financially wise, holding onto our current property and scraping together a small downpayment for a less expensive SFH or selling our current property and applying a $100,000 downpayment toward a larger SFH?

So it's not like Turnkey is pain-free, you have to do the work and know how to avoid being taken for a ride, like pretty much any big financial decision in life.I am always happy to provide info to new investors, as it fuels my BP addiction anyway ;) But before you or your friend make any decisions, it's crucial to have a serious heart to heart about what the goals are for the investment and what your needs are with regard to time commitment, risk, and control (do you need to be near the property, do you need to be in charge of tenants?).