Why Home Equity Loans are Worth It?

[Cooper Walker]

I am brand new to real estate investing and I am looking for ways to get involved ASAP.  I have heard a lot of good things about home equity loans or home equity lines of credit, but I cannot seem to see the bigger picture.

For example, if I take out a home equity loan to purchase a new rental, I now have created three debts.  1) The mortgage on my current home which I took out the home equity loan on, 2) the mortgage on the rental, and 3) the home equity loan. I keep seeing people raving about how this is the way to go, but all I can see is that I'm going further into debt.  Why would I go this route rather than saving up a down payment and then only having the first two above-referenced debts.

I have been trying to figure this out on my own, but I find that I'm just stuck.  Can somebody please tell me how it can be a good financial decision to take out a home equity loan to purchase a rental?