Refinancing vs. Home Equity

[Garrett Jefferies]

Hello all,

I'm brand new to BP but have gotten so much already out of the short time I've been a member. I am inspired by the so much support members give to one another. 

My investment partner and I are in process of purchasing our first rental property but need some help clarifying the leverage abilities of home equity loans and refinancing options as part of our strategy to acquire a second property. In the situation where we get a good deal for a property under market value, and get it appraised for more than the purchase price, is that added value considered owner's equity? If so, what are the comparative advantages/disadvantages of home equity loans vs. refinancing? 

Thank you,

Garrett