Preparing for my first rental

[Tim S.]

A couple years ago I bought a foreclosure as a primary residence and first home. Purchase price was 36,000 with a conventional loan that is nearly paid off. I have been putting some work into it while living here and it is now almost completely remodeled. It should be worth about 95k now. Since it is only 2 bedroom we will soon be outgrowing it and I would like to look for a 3 bedroom foreclosure and rent out our current home. I thought I would take a home equity loan to fund the next house. However, from reading other posts I read a lot about home equity loans only being approved at a max of the original purchase price. Is that accurate or am I misunderstanding? If the house is now worth 95k can I get 70% of that (66k) or will I be limited by the original purchase price?