Financing options for our first investment property

[Megan Lamke]

We are looking to purchase our first investment property. My husband is hesitant to do a cash-out refinance or a HELOC in case the value of our home doesn't say high. How have you reassured first-time investors? Alternatively, we could use our 401K to fund our first purchase. What would you recommend?

Home Value: $260,000

Mortgage Balance: $98,000

Mortgage payment: $573.80

Interest Rate: 3.5%

401K: $171,000

We are debt free except our mortgage.