HELOC - Purchase Fully or 20% Down

[Brandon Mull]

I am new to investing and new to BP. I live just outside Charlotte, NC. I have an $80,000 HELOC. My goal is to obtain single family rental properties ASAP. I am having trouble deciding between buying the first home fully with my HELOC or to buy the house through a home loan and put 20% down from my HELOC.

Buying the house fully would produce a lower interest rate, but my money would be tied up for awhile.  

Putting 20% down in addition to a home loan would produce a higher interest rate, but I would have more money left over to purchase additional properties.  

Can someone please help me rationalise these options.