In a buyer's cycle, there is more cash flow.

I have been considering a DSCR loan on the Townhome to get some of our cash out of it. 

They can also help you figure out rental income, costs, and cash flow.

Currently I have the ability to purchase a single family residence for a price that won't cash flow unless I add an in-law suit of sorts.

Calculate cash flow I would hypothetically receive from STR MTR LTR I would put down the 3.5 FHA.

Which makes it difficult for positive cash flow.

Quote from @Cody Miller: I have been in my home for 7 years and have accumulated some equity and wouldn't mind using this to buy a rental Most people will recommend you cash out some of that equity and use it to purchase a rental.

Inspite of the recent correction, as the house prices currently stand and with inflated interest rates plus steeply rising property taxes (year over year municipalities have increased taxes and utilities 7-15% to make up for covid deficits); cash flow is virtually impossible even if you buy in the GTA outskirts like Oshawa, etc.

I have 11k cash and the rest I’m taking out if my 401k. 

Do you have a lot of equity/cash flow/personal assets to protect?