I really want to purchase a rental, but not sure how I should fund it.

[Becca Blackwall]

I've been combing the market for a long term rental, and there's not much available. I found some deals that may be of interest, but I'm not sure if it's best to use an investment loan, or a home equity loan ( I have about $300k equity in my current home). I've considered investing in a different state to maximize cash flow, however, I don't think its the best idea for my first time. Any and all advice/recommendations are welcomed. 

[Jay Hinrichs]

as a first time investor and going out of market.

figure out a market  

figure out the median price point for the SFR you want to buy

and buy at or slightly above that .. this will get you in the safety zone.

don't buy in a market were the median is say 150k and your looking at 100k houses. 

those will be life long renters tough to manage and tougher to maintain. 

In addition almost all the buyers are going to be investors no home owners.. you want to buy where there is still home owner activity so the neighborhood has a mixture.

keep in mind if you get into a neighborhood that is substantially lower than the median that's exactly where your going to land  investor dominated and values will ONLY track rental rates you will not have any significant appreciation unless rents go up a ton.. which rents have basically peaked for this cycle. 

Owners use completely different metrics to buy   Schools  Safety quality etc. thats what you want starting out even if your just break even the risk of going into lower value assets in renter dominated areas is simply not worth it to you starting out. You want safety and quality