Is using a home equity line of credit (HELOC) a good idea?

[Zach Mannon]

Hello everyone, 

I am trying to find ways to buy a investment property. As of today I have 1 rental with an approx value of $200,000 and I currently owe $110,000. After meeting with the bank they agreed to giving me up to 90% of the equity with a variable interest rate starting at 4.75%. The property I'm looking at is a 2 bedroom condo with a asking price of $65,000. I'm going to try and negotiate it down to $50,000 putting down $10,000 of my own money and taking a HELOC of approx $45,000. I know rent in the same complex is about $750 with HOA fee of $150 so I feel that I should be able to have the condo payed off relatively quick. With all this information how does a experienced real estate feel about HELOC ? And is the interest tax deductible? Thanks.