Want to do a 203k loan but already have mortgage?!

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I just purchased my first property that I’m living in right before covid hit in Indianapolis. I got a very good deal at 140k with comps at 200k-260k. I’ve put some sweat equity and about 3k into repairs. Some paint and installed an AC unit that it was lacking. My friend who flips houses and is a realtor thinks if I put 20k into it (doing what I’m able and hiring out the rest) I can get 230k-260k for my property. I’m not wanting to sell though. I’m wanting to potentially do a cashout refi or get a heloc to buy another house but I’m not sure how hard it would be to get approved.

There’s a property a block north that I’ve been in contact with the owner. Her brother lived in the property but he passed away and they want to sell to me. I’m wanting to do a 203k loan but I don’t know if I’ll get approved since I already have a conventional mortgage. I would be getting a great deal. Can I get a 203k loan and then rent out my current house? Do I need to be making enough to make payments on both in case it can’t get rented? It’s a very popular area and close to a university. I know there wouldn’t be any problem renting.

I’ve been making 3k/month but will be going up around 6k ish a month or more. 2k base plus commission as an acquisitions manager for a wholesaling company. Sorry this is so long. If I need to clarify anything I can. Any help would be greatly appreciated! Thanks.