Question regarding financing- what to do...

[Christin McKamey]

Hello, I feel like my mind is going off in a million directions and just want to get some feedback from those more experienced. =) I am planning to buy my next rental property (hopefully a multifamily if I can find a good deal) in the next year and a half. I own 1 single family home free and clear that's worth around $70K. I also own my primary home outright (worth $250K) but would prefer not to take out equity on my main residence. I'm wondering- is it better to just be patient and save up $ over the next year to year and a half (I think I can come up with $50K or $60K) OR is it better to use a HELOC or equity from my rental property to use as a down payment for a new rental property NOW? I guess I'm not really understanding why people don't take more time to save up cash and if it's a good idea to move on something when I don't have the cash to do so.

I'm generally a pretty cautious person with a debt-free mindset, so I'm struggling with how much risk to take and when. Any help is greatly appreciated! =)