Is using your home equity to buy a sin. fam rental a wise choise?

[Austin Dudley]

I live in an area that is rather expensive to own a home. I scored on buying a home for 220k and now years later it’s worth about 460k. Is it wise to use this gained equity in buying another property in my area where buying a rental can mean somewhere around 500k? The interest rates are still relatively low, but I’m unsure of buying a rental in such an expensive area. Would it be better to wait till the boom drops? Thank you for any help!