primary residence equity

[Kurt F.]

I'm fairly new to investing. Currently own a primary residence and one relatively cheap duplex -- of which one side is rented and covers the mortgage, taxes and insurance...I am finishing the other side to get it rented out and some cash flowing. I owe about 50K on the duplex, and when finished it will probably be worth 110K.

I need your thoughts on this: have any of you used equity in your primary residence to purchase investment property? My home is paid off completely. I am typically quite conservative with money, so the idea has not my favorite. That said, how smart am I handling this? Would I actually be smarter to use that equity (if it's even reasonably accessible with the refi expenses, etc.) or should I stay safe with a paid off house and get the money through other means?

Really would appreciate your thoughts on my situation...thanks.