Using HELOC/HEL for some or all of purchase

[Matt Norris]

Currently in Nashville, TN, with a primary residence and a SFH rental with strong cash flow. Currently looking to add another rental property. We have flirted with the idea of section 8 tenants, but are leaning towards a more traditional long term rental plan. Being in Nashville, we are very open to looking in other up and coming markets. On our rental property we have about $100k-$120k in equity and we are planning on leveraging that for the next property. In some markets this could purchase a property outright and others we could cover 50%. We would like to be able to continue the pattern of leveraging equity and OPM in to the next property. Any advice on the pros and cons of using the HELOC/HEL and purchasing outright or only using for a large down payment?