Financing for 1st investment property

[Wendy Francis]

I live in NJ and have owned our home since 2008, we have a lot of equity in our home and want to know if its better to use the equity to fund the entire price of an investment property (we have around 500,000 in equity but are only wanting to take around 150,000) or just apply for a mortgage loan. I understand there would be a lien on our home, but we are not too worried about that, which route would be the most beneficial? We haven’t decided which area we will be investing in yet, definitely not NJ its too expensive. We are literally in the beginning stages of this journey and just wanted the most important information ,about the  financing ,before we proceed to the next step, which would be the location of the property. Also does one generally apply for the loans in their home state or the state the investment is in, or does it matter?

Thank you

Wendy

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