Buying a second investment property when I don’t have access to equity from 1st

[Cristopher Hanks]

Greetings,

I currently own one single family home. I have a lot of natural equity built up and I currently have tenants occupying it on a -2 month lease. I am currently living in a separate property I don’t own, just renting as a tenant myself.

I have been reading a lot about using equity to purchase a second investment property in the form of a HELOC or Cash out refinance. However, most banks will not offer those on investment properties because I'm not living in it full time. And those that do don't recommend it because rates are so much higher going that route.

What is the best way to secure a second property in my current situation? Do I just need to save up 20% for a down payment? Or is there another smart/not extremely risky way I can accomplish this. So far no one I’ve talked to has been able to help. 

Thanks!