Financing for 1st investment: cash or equity for down payment?

[Danny Gallagher]

Hi folks,

I am looking to make my 1st investment. I am wondering whether it is better to save up cash (will take longer to do) to use toward a down payment or use equity in my primary residence for the down payment, then take out a 2nd mortgage to finance the balance on my investment property. Using equity from my primary residence and then the 2nd mortgage approach will obviously increase my debt. Looking for those who have done this and their feedback....were you still able to get a ROI? Thanks, Danny