Creating borrowing power

Hi guys
So long story short last year
My business only turned over $30,000 this year I’m expecting atleast double that but I want to buy a second investment property before the financial year ends, I have $110,000 in my offset its a joint purchase that another family member put the deposit on which was $150,000 and the repayments were up to me but its positively geared because of the 50% deposit so it’s just my life savings pretty much.

The banks are only willing to lend me up to $100,000 and that’s if I pay off my car loan of $25,000 in full. I bought the car last September with the intention of paying it off before the end of next year so I don’t end up paying too much interest ,it’s a 5 year loan I just wanted to keep liquid cash on hand and that’s the only reason I financed it.

The situation is as follows , I am looking to build some cashflow through high yielding properties in the
Kempsey area , capital growth isn’t a concern at the moment just the ability to service future loans without picking my own pockets too much, set and forget. I’m looking at properties in the 100-110k mark I have one I’m currently negotiating .

Now my options are
1) I pay for the property with cash and have it outright owned , get $215 a week rent which works out to be around the 10% yield mark. Then Wait till the financial year ends and I have my tax return with a bigger turnover for the year and then use the equity in that property , keep my car loan for another year and hopefully I save 10-15k for a deposit on a second Kempsey property for next financial year financed with the first as collateral.

2) I pay the car loan off with my cash reserve and go back to the bank before financial year ends and take out a 100k loan and put my 20% deposit on the house im negotiating and let the equity build then go ahead with purchasing a 2nd after financial year ends using the leftover cash as a 2nd deposit.

I understand it probably benefits more paying the car loan off because I can’t claim the interest where as I can claim it on the house, but from what I understand a fully paid off house worth 100k is better then 100k cash because it’s a cashflow producing asset and I imagine the bank will give me more borrowing power with the rental income

My third option is leave everything until next financial year save a bit more, get a bigger loan and buy something a little closer to home next to my existing property with lower rental returns. Or just two properties with the bigger loan in Kempsey but the sooner I buy the sooner I start earning on rent.