Accessing Home Equity to Purchase Property

[Malquan Gaillard]

I bought a home while in graduate school and shortly after graduation relocated out of the area.  After contemplating selling, I ended up renting out the property.  Now that I am in a new area I am interested in buying a primary residence (which I will likely move out of in a year and rent out).  The property I own is worth about 50k and I am looking to use the equity in that property as my down payment for a new home that is 150-200k.

What are my options for accessing that equity?

HELOC vs Loan? Which is better in the long term?

How much of my 401k can I use?

Should I aim to find the HELOC or Loan with the same lender I am getting my mortgage through?

I am planning to purchase the new home in 8 months, should I get the LOC now or wait?

Are there any banks that will use the home as collateral and not require a deposit or PMI?