using another's home equity to finance purchase

[Kelly A Malzewski]

I am currently renting out a home I inherited. The home is mortgage free. I'm considering taking out a home equity loan/line of credit on the house to purchase a subsequent rental property. Any advice for or against this? Is a better option to take out a conventional mortgage for the new purchase? Any better tax implications on one vs the other? I'm not a first time home buyer so some of the lending options wouldn't apply.