From a tax perspective, you'd be much better off selling your current house, and likely paying no tax vs. selling your rental and paying capital gains plus depreciation recapture.

There are a few really positive benefits to this strategy that I wanted to share

Better to build your own equity through the debt pay down, enjoy the tax benefits of ownership, and garner the equity of an appreciating asset.

(Also look into the FHA 203K loan)Another benefit to going with a multifamily is that it can "boost" your purchase price using 75% of the other income to help your debt to income ratio... so $1000 rental is worth $750 to offset any PITI payments.

Sometimes the HOA fees (essential the same as our Body Corporate fees for units here in Oz) can be very high and out weigh any cashflow benefit of the rent.Getting funding can certainly be harder but not impossible. 

The nice thing is that you get your equity out but are not paying taxes on the gain.

I think a duplex or small multi-family would be a great way to start off due to the benefits you had mentioned, as well as the smaller down payment.

My goal from the beginning was to sell it after 2 years and avoid capital gains.

What is the best book or resource for gaining knowledge and insight on "subject too" strategy?

I plan on investing in the DFW area, Austin, and San Antonio, Tx.  100k SFH'sMy current plan is to read more books, watch more webcasts, and gain more knowledge.Followed by next year becoming a pro member and practicing evaluating SFH deals, so I can get a grasp for what a good deal is.I will start trying to go to meetups around my area and find a mentor.