Getting started with low money down vs heloc

[Whitney Hutten]

HI!  I've just recently joined and am blessed to find such a knowledgeable group or people.  

I'm hoping you guys can throw out a point of view.  We picked up our primary home purposefully in a college neighborhood with the intent of renting it out when we (insert reason...travel, retire, our child goes to school).  We absolutely love the house, the schools and the location and aren't moving for at least 10 years.

Now our goals have shifted to pick up more properties. We have a couple of options to make that happen: 1. liquidate part of our non-retirement taxable investments for the downpayment (and trigger capital gains) or 2. HELOC... (We are open to other ideas!).

In either case, we would have enough to put 25% down on 1 property given our market (as the other would be the reserve).  So how would we pick up the second property?  I need some help seeing what is possible.

Thanks!

Whitney