Using Home Equity Loan or 30 Year fixed loan?

[Stepheni Larson]

Hello BP! I got an offer accepted today for a rental property with a price of 138k. I have my primary residence paid off worth 220k. Should I use a 30 year traditional loan at rate of 4.875% and 4000 closing cost OR home equity loan with rate of 4.75% and 550 closing cost? Am I able to deduct the home equity loan interest for 2018 federal tax return? What is the best financing option here, should I even leverage my fully paid primary residence?

Thank you!!