Home Equity Loan or Save

[Michael R.]

Hi All,

I purchased a 2 family house that I am living in. I have 200k equity in the house, 450k purchase price and the tenant is covering all but about $600 per month in living costs including utilities. I want to begin buying other houses which is why I stopped renting and moved to my current place. My question is I only have about 42k cash in the bank so I would ideally like to use my home equity for a down payment. If I do this, I will be 100% financing the next property between the Home Equity loan down payment and mortgage. Does this seem like a good plan if I can find the right deal? Are there any alternatives in my situation? It seems like if this were to work out then I am basically at a stopping point unless I have more equity remaining to use on another property. Thank you!