Is using home equity (from a starter home) to invest risky?

[Michael Chang]

Hi BP community, 

I am a newbie in BP. A bit of background context: I have the downpayment saved for my starter home, and I would like to understand how you can go from the first property to buying second property. Is using home equity (from a starter home) to invest in a second "nicer" home a risky move? Do HELOC and Cash out financing carry implied risks? When accessing equity, you are borrowing more money thus higher repayment. I'd like to better understand the risks and possible consequence of home equity financing and other ways to buy second/3rd properties. Thanks in advance for sharing your pointers and knowledge.