How to use home equity to invest

[Jason A.]

Hi BP community,

I'm a pretty new investor (bought my first in 2013).

I have a question about using home equity to purchase more investment homes. I've read the entire thread (https://www.biggerpockets.com/forums/48/topics/130...) which was really informative. Thank you everyone.

So here's my situation. One of my investment properties appreciated from $95K to $140K. I put 20% down, so I potentially have $64K in equity.  

I've heard a lot about refinancing, getting a second mortgage, or getting a HELOC to purchase a property. I'm looking at cash flowing property priced at around $50K and would like to put 20% down and conventional 30 year fixed rate financing to purchase the new property. It has a 1.7% RV ratio, so it cashflows nicely.

Is this feasible? Advisable? Worth the headache? Too risky? Or a good strategy? How do I get started?

Thanks in advance for your answers!

Jason