Building equity in a property is always a good thing.

Use our maturing CDs to buy a new primary residence. 

I don't love taking HELOCS to burn, but if you have 500k in equity, you can safely use up to 250k to buy another property and probably get one that cash flows well by not living there.

Me and my wife currently have a primary residence (Single Family) in AZ that we acquired with a V.A loan. 

Are you looking to increase cash flow with every sale and purchase or keep building equity to buy a larger property down the road?

But we just bought the house a few months back so there isn't a ton of equity in the house as is.

Trapped equity???

Alternatively, consider a cash-out refinance to access equity without triggering capital gains or explore a 1031 exchange to defer taxes by purchasing another investment property.This post does not create a CPA-Client relationship.

If you are looking for cashflow, the key is to transition the equity you have into assets that provide a higher return on equity (ROE).

Quote from @Tim Johnson: Has anyone seen an example of a lender combining debt with equity on a real estate deal?