The key is having no other consumer debt as banks will lend to 40% debt to income (some use another formula), so the less consumer debt the more homes that make you money. 

The house that we would like to buy for $160k would not be an investment, but move in ready for our family - then I thought with the cash back I could invest in 2 or so SFH or Duplex rentals by putting 20% down for each.

We are getting ready to take a HELOC out on our primary residence.

The property has been unused for 2 years, still has furniture and will require some updating/cosmetic work to be rent ready but it seems like a great option to avoid the lender process on my side. 

I first determine what the Market Value should be for the property in rent ready (like new) condition.  

Running a Mortgage Credit Report on any potential tenant will pull up more dirt than a worthless online consumer credit report.If you have someone with an 800+ score, make concessions to have them as renters.If you have someone with a 580 score, pass!  

When you're ready, I imagine you could invest in both Arkansas AND Texas!

I have only 3 units and I'm getting ready to close on 4th but all of mine are SFR so I am in that space. 

We just aren't ready to purchase the kind of place we want right now.

Roll up your sleeves and get ready to put your nose to the grindstone!