How to approach saving money for first investment property

[Raymond Lau]

Hi I'm new to the forum and would like to get some insight on investment strategies to save for 1st rental property.

My sister purchased her first SFR last year with conventional mortgage (20% down payment,30 yr fixed rate).

She wants to purchase a rental property in the future so she is saying money for the down payment and cash reserves. I identified two methods of securing a loan through the bank:

1. Save at least 25-30% for down payment of rental property

2. Add additional payments to her home to get more equity. Then take a home equity loan on the home for the down payment for the rental property. Since the home equity loan is tied to the house, would she be more likely to qualify for the loan?

I know there are many other methods out there. What is the best strategy to save for an investment property?