Mortgage vs Equity Loan

[Thomas Brinkman]

Hi All! 

We own one property (our home) worth around $500k, no debts owed.

We would like to purchase a second place as a rental property for 200k-250k.

We also have to renovate our current home (estimate cost around 65k).

I currently have around 80k in cash.

What do you think would be the best approach. Should we use the cash for a down payment on the new property and then use an equity loan for the renovation and the remainder of the cost of the investment property? Or get a mortgage with the property (I heard interest rates are lower with mortgages than equity loans) and equity for the renovation. 

I know its ill-advised to borrow, but we plan to leverage debts for the property. Just want to see what you guys think.

Thanks!

Tom