Since house flipping has become so popular over the past few years, it's never been more critical to give your projects that extra *POP* that homebuyers will notice as they're swiping through Zillow. 

Where in PA is the small piece of property you're looking to buy? 

Here are additional comments:1) Buying out of state removes any local knowledge you have from assisting in your success, including knowing areas, people and costs. - We always recommend buying your first rental locally if possible and DIY managing to learn as much as possible before investing OOS.2) Lots of crooks and incompetents in the PMC world:( They both cost you money.- As already stated, you'll have a small portfolio.

I would suggest you do both of what you suggest - meaning get either a new mortgage (more conservative route) or HELOC on the townhome and use those funds to buy your next investment property.

I agree that some of these smaller towns have great buys and strong rents. 

You can also offer to lease with an option to buy to tie up the property until you are ready to purchase. 

Buy and Hold investing is a great avenue to begin with as most people live their lives off of residual income. 

Buy not many people can do this and it requires very good book keeping.

Increase income, decrease DTI, and buy a home (i.e., get a higher paying job, work two jobs, go to trade school, get a higher paying degree, live in affordable area, etc...these are things that most of us did).

A lot of ultra aggressive investors who want to buy buy buy aren't buying so aggressively now like they have in years past.