Mortgage of LOC?

[Maciej So]

Hi everyone!

I just completed my first house renovation.  My wife and I were able to save enough to buy the foreclosure and to pay and do all the renovations ourselves.  Now it is time to rent this place out and go on to the next rehab.  

What we want to do is use current house as leverage for the next.  We need the money to purchase the next property and extra cash for fixing it up.  Should we take out a mortgage on second home using the higher value of the first home as collateral or should we just get a line of credit on the first home?  What would you guys recommend?