Financing second purchase HELOC vs Mortgage

[Fahim Ahmad]

Hello,

New to real estate investing here with my first post.  The topic I want to get some feedback on is regarding financing my second purchase.  Here is my current situation:

- Currently own my co-op out right (blessed with a family gift) appraised at $400,000 and was able to take out a HELOC for $235,000

- I am using $150,000 to purchase a town house in West Palm Beach, FL (all cash deal closing at the beginning of August 2017) leaving about $80,000 remaining available from the HELOC

- A little about the purchase - $350 Tax + HOA plus repayment of HELOC currently rented for $1300 minus 8% management fee

The question I am throwing out to everyone: what is the best way to fund my second purchase?  I am currently looking for properties in West Palm Beach, FL (I live in NY) around $150,000.   The options I see are:

1. Use HELOC money for down payment on next property and take out a traditional mortgage

2. Is it possible to take out a line of credit on the new property to increase my current line of credit (currently HELOC is only under my name...I would most likely have to apply with my wife and our combined income).

Any ideas would be greatly appreciated.  Thank you!