Strategies to use Home Equity to buy an investment property

[Dilip Rangan]

Folks,

Newbee here. I bought my primary home last July. Between then and now, the home value has appreciated by about $300K. I am looking to use this $300K equity to buy another rental property.

From my limited knowledge, I have heard about getting a HELOC for $300K, use it as downpayment for a rental property. Is this the best way to go ?

Background Info : Primary residence bought for $2.4M. Loan Amount Outstanding $1.8M. Made $60K worth of improvements. Zillow currently estimates its value at $2.73M. have great Credit History

Thanks in advance for your suggestions.