Funding for a second property questions from a noobie!

[Jared L Getz]

Hello Forum, 

I cannot believe I never thought to look for help in a real estate investing forum!  I have a duplex which I financed in 2007. I presume the property was considered a primary residence because they were aware I was going to be living in one side.  Now, almost 9 years later, it is exclusively a rental property...and both units are "always" rented out.

I now reside in our family home and am anxious to get a mortgage on another property between 2 and 4 units.  I plan to live in one unit as I renovate.

I have scoured the internet but have never found much information on what my options for financing are, and a couple phone calls I made to local banks did not do much good, as my goal of purchasing a property is very hypothetical because I will not be ready for another 6 months or so.  Any and all suggestions and advice are appreciated!!

Here are some details.

My duplex was purchased at 80,000.  I currently owe 68,000.  The value of the home is estimated at 110,000.

Now, I was able to put only 5% down on this property back in 2007.

So here are my questions....

1.  I'd love to get away with a 5% or less down payment.  Is that possible considering that I am going to be residing within the property?  Will my first rental property be a problem? 

2.  Could I use my rental property equity as collateral toward a down payment....or maybe take out a home equity loan to use as a down payment?  I do understand that a home equity loan would increase my debt to income ratio, but I'm curious.

Those are the big ones. Any advice, thoughts, or recommended resources would be most helpful!!