First Rental Property Financing: Cash-out Refi vs. Conventional

[David Tecchio]

I will be purchasing my first rental property and I own my primary home outright with no mortgage.  The property costs $210,000 and my home’s value is 465,000. I am not sure what the right way to finance this would be. I could take out a conventional investment fixed rate mortgage that seems to have a slightly higher interest-rate than a regular mortgage. The other thing I am considering just taking cash out refi on my primary home to pay for the rental property in full and then subsequently expensing the mortgage on the rental as it will be used to fund my rental.  If I did the latter, would it be two different closings and two different sets of closing costs? What would be advantageous and why would one choose one option or the other? Thank you very much for everyone’s help.