Cash strapped but want to purchase

[Jonathan Cooke]

My wife and I are debating on taking out a HELOC on an investment property we own to purchase another property. My problem with this is that it's already too hard to cash flow as it is without adding an interest and principal adjustable rate HELOC. Are there other alternatives for down payment capital that are preferred or are there interest only HELOCs for investment property? The property has equity we can tap IF the lender uses income to evaluate the property value. I'm not opposed to 2nd mortgages or switching our current mortgage to another provider if they evaluate the value using the income the property generates. Thank you in advance for all lender suggestions and product suggestions. I'm sure I left out details necessary so don't be afraid to ask.