I also have a HELOC for 62k on this same residence. 

Once enough equity is built in this first rental property, I would then (when the right property presents itself) pull out a HELOC and use that as a down payment on a second rental property.If I can generate around the same amount...if not more....of cash flow from the second property I would then use both positive cash flows to pay off the first rental in full as soon as possible.

$ divided up:100k liquid200k Paid off property(1) I am trying to place my current funds in liquid investments where I can pull it out when I am ready to purchase(2) I have contemplated using a HELOC or Cash out refi in order to assist in the purchase of a another home. 

An alternative is to refi your current mortgage balance and then get a HELOC.

Your best move is to either Refi or get a HELOC on the property.

I live in a home that i would like to make my first rental property, which needs a ton of work. my credit score wont allow me to finance a pack of gum, so im unable to get a heloc. and my job doesnt pay me enough to have a savings. i have been doing a few diy projects here and there but at this rate i will have my property ready for rent in 2040. any suggestions on what i can do to speed up my renovation project to get this house rented out sooner?

Some banks will offer a line of credit on another rental property or you can take out a HELOC.  

My idea was to get a loan based on the equity in the first house either through cash out refi or HELOC.

Not so sure about things like a HELOC.

HELOC or Hard money might be a better option.