Now that I’m receiving cash flow from it would it be smart to get a equIty loan or equity lIne to buy another property.

Our equity in the rental is $100k maybe a bit more if we make some updates.

I suspect that as part of what is considered in doing a full blown appraisal, your overall risk profile and DSR (Debt Service Ratio) will be looked at.You have to be careful about your assumptions and ensure that the stuff you're adding to your portfolio is capable of producing the income where that looks favorable, especially if you don't have other earnings (or much of them). 

If they are motivated and go for the flip number if not as much or not as much equity then go for the rental number (160k).

It's likely that they will have no equity in the home, especially if we are in the middle of a recession and their original 15 or 20% deposit has been eaten up by market depressions. 

My Investors are open to the down payment price and splitting profits 50/50 (Overtime for equity gain as well as monthly cash flow).As this will be my first investment property I am buying.Also, I have means of financing.

I feel I am ready now.My focus is on increasing cash flow and building equity.  

I currently have my primary residence with approx. 100k in equity. 

That's all assuming you can get a successful judgement against him.Honestly if he's a creep and not communicating, that may work in your favor. 

Ideally, I’d like to buy a SFH or small multi unit with a VA loan where we can buy at a discount or force appreciation with some renovations while living there to gain equity quickly, then rent it out or sell when we move.Any advice on some areas with a reasonable commute to the Naval Station, good schools and low crime?