Should I/How Do I Access Home Equity

[Lisa L Day]

Here's the skinny.  We have an accepted offer on our first investment property!  Duplex, $240,000.

How should we pay for it?  We have so many options and my head wants to explode. :)  We can pay the 25% down payment with stock investment money and get a traditional mortgage on it, but this seems the least attractive because I'd prefer the stocks to stay put. 

We own a house, our primary residence. We owe $500,000 and we could easily sell it for $850,000 for it today. SO. Do we do a HELOC or a Home Equity Loan? WHERE do we go to get this?? Do I work with my current mortgage company? Do I walk into a bank and say, "Hey, can you help me access the equity in my primary residence?" I've caught wind of home equity credit/loans not being able to be used for purchasing a new Rental property, but after poking around on here a bunch, that seems incorrect. Are HELOCs for more short term borrowing? This would be for the long haul.

ALSO, if we CAN pay the whole thing upfront, is that the best way tot go?  Why or why now? I'd LOVE advice and direction.  

Thank you beautiful people!