You can't use equity in your home to pay down your home because you are borrowing against your home to take equity out. So of the two only one is possible.
Whatever you do, don't pull equity from that prime La Quinta property to invest in C or D class property in the Midwest. I would even be cautious with properties labeled as B class from the folks trying to sell you the property. Do your research, take your time, define your goals. There is no rush....... much better to do nothing than to make a mistake. Also, realize that CA newbies and their "what should I do with my money" mentality can be somewhat of a target here. If you buy turnkey, just know what you're getting into.
Pretty simple answer... Does the equity in your home earn you cash flow?
So hard to give an opnion without knowing your financial situation .