Buying 2nd Home, what to do next?

[Anthony Yagen]

Hello all!

New to the forums here and also new to RE investing so please bare with me!

Situation: As the title says, currently looking to purchase a 2nd home (to use as my primary) and most likely will convert my 1st home into a rental (that is the plan for now). I have accumulated some equity in my primary house (roughly 120k-130k) and looking to take out a HELOC to use as a down for the purchase of my 2nd home and to help out with some repairs on my current house to get it rental-ready.

Questions:

1. Would a HELOC be appropriate in this case? Note - would prefer using equity opposed to my own cash but understand that may not be the right move.

2. If I go the HELOC route, and take maybe 30k-40k, what would you suggest is the best way to pay this off - other than paying it down from your own pocket? Should I c/o refi my first house and pay off the HELOC? My current interest rate is pretty is good (<4%). Upon the refi, per my calculations using today's rates, I should at minimum break even to being cash flow positive after a tenant is placed.

I appreciate your thoughts in advance. 

Regards,

Anthony