We currently own a house in Seattle, we bought it 8 years ago, and we owe a little over $160k , i recently asked a bank institution for a HELOC loan and should be getting about $180k equity in the house to invest. 

I went forward and signed a contract with a buyer through bank financing.

Your bigger challenge could be taking title in the LLC for the new purchase, unless working with a local bank who will allow it - like Firstbank.

You may also want to start talking with your bank to to see what kind of loan you could get and in what price point.Best of luck. 

@Ceasar Rosas one of the banks that I have told me they would only support up to 2 units with a VA home loan. 

You could obviously use the HELOC, or borrow the down from your 401k, you could save cash for a down payment and get standalone financing for the new buy, or any number of things.There's plenty of SFR near you that would cost less then 165k, and I'd be tempted to use just as much equity as I needed to put a down on the first one and get it rolling before repeating the process.I wondered if you'd ever heard of the Infinite Banking Concept?

Most of us always look at an income based analysis anyway, but the banks will take this in to consideration for 5+ units.If you are looking at 2-4 units, it can be trickier.

Owner finance or bank loan.

Assuming 20% down is needed, any local banks (M&T?)

Purchase closing costs seem a little low, did you count the bank fees for the loan?