Financing for Rental Properties - Cash versus Financing

[Damon J.]

I am fortunate to have the option of paying cash (via open equity lines) or conventional financing (good credit, income). I am trying to purchase a few more rental homes in the price range of $60-$100K.

I realize that I do not want to tie up all my cash, but when I run the numbers on purchasing a $60K house the transaction costs with the mortgage seem so high as a %. It seems as though it would be better to get a home equity line once renovated. What are potential downsides to this strategy?

Secondly, I have seen limitations on # of properties financed. Do HELOC's count as a property they same as a 30 yr connventional mortgage? For example if I have 4 properties with just a HELOC on the, when I go to purchase the next property via a conventional 30 yr will that be considered my 5th property?

Thirdly, if the properties are triplexes, quads will this make a difference?