Need advice for buying a second investment property

[Muju Hussain]

Hello BP Community,

I need some advice for my second investment property.  I have been owning a property now for five years, and it is my primary residence.  I am interested in another property that is for $450k in a great neighborhood, and it is below market value.  I really want to buy this property and wanted to see if i can get your advice on how to go about it.  I have a decent idea about approaching this, but I would love to hear some creative financing ideas from  you all on how to buy this property.  Here is the scenario:

- I have one more person who is interested in putting some money down towards this house.  However, we don't want to put 20% down unless it is absolutely necessary. 

- A couple of months ago, I applied for Home Equity Line of Credit, so i am thinking about using money from my HELOC towards the downpayment for the second property.

- My plan is to buy this property and rent it out immediately.

My question is:

- Still owning my first property, will I still be qualified for another loan?

- I am assuming investment loans will have higher interest rate, is this true? and any idea as to what percent interest am i looking at?

- How much money will I have to put down?

I would greatly appreciate any advice or comments you guys can provide.  Thank you in advance for your help!

Muju