You do not own the home so you cannot use its equity instead you are borrowing money based off of the current owners sale price.Using the same banks/lenders Heloc in some cases can be fine since its attached to another home.

The property is rented out to section 8 tenants for a total of $4700 currently.

Hi Shane,It's generally advisable to maintain separate accounts for operational funds and rental income.

I have a good W2 income and have some capital to use.

Realtor.com puts the property estimate at 287k, Zillow at 255k for the current values. 

But right now, i currently own a SF in KY and am house hacking a duplex in round rock Texas.

On that $x, you can defer $x of your gain, which would then be deferred from 2024, and taken into income on 12/31/2026.Working with your tax advisor you could toy around with what is the right amount to defer from 2024 until 2026, and just invest that amount.  

Thanks to the Cost Segregation Study, the property investors were able to reclassify the property into the following categories to accelerate the depreciation resulting in first year depreciation of $26,167,989.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

As a result, I'll be selling my house and using the gains to put a down payment on a secondary house next to my current rental property.

Do you recommend me buy a house to fix or buy another house new for me and use my current house for rent and move to the new one?