We purchased our first rental property last summer and so far it's been what we expect it to be.. the rent covered the monthly mortgage with $200 positive cash flow. (we'll use this for fixes, etc).

We are thinking of getting a second property, but not sure whether we can get approved for another mortgage since it's only been a year and last year's tax rental income/loss showed loss (since it's the first year, taking into consideration the closing fee, transfer tax, etc).

I read around the forum and when I secured the loan for our 1st rental last year, the bank officer said I will need at least 2 years of proof to let them consider the rental income as "income". 

Our primary home is free of mortgage.. we could get a HELOC..
Our equity in the 1st rental home is 50-60%.

what's the pro and con of getting a HELOC from our Primary home to finance the 2nd rental?
with the 50-60% equity we have on the 1st rental, will the bank let me apply a HELOC on that one as well? 

I was thinking of still applying for conventional mortgage before going HELOC, but I doubt they will approve since I still have 40-50% mortgage on the 1st rental..

thoughts, anyone?