How to best position my personal finances for investing?

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Hello everyone! This is my first post to the forum now that I am finally a member (I've just been stalking the site for quite some time now). I am 26 and really excited about starting my journey in real estate investing. Here is the situation:

I currently own no (money making) assets, and the only debt I have is a 15yr mortgage (balance of 110k) and a 5yr auto loan (12k balance). My home is worth 190k so I have 80k in equity. 

I want to free up cash to use for purchasing my first rental (strategy: buy/hold - niche: SFR or MF). In your opinion should I:

1) Cash-out refinance - free up the equity and move to a 30yr to minimize money going into liabilities, maximize money going into assets (Kiyosaki).

2) HELOC

3) Sell my home, buy a home half the cost and use the difference to invest? 

I'm leaning toward the third option because I could really keep my mortgage payment low while freeing up the cash. My wife is on-board to downsize as well, so bases are covered!

Thoughts? Is there anything else I should move around or ways I could prepare my personal finances before I make my first purchase? THANK YOU :)