To take out a equity loan for first rental?

[Randy Wiley]

My wife and I are reading books and thinking about different strategies for buying our first rental property. One of our strategies is to take out a home equity loan on our current house, that is paid off and use that to finance the rental property. That would be our down payment, or is that a bad idea? We have also thought about renting out house out and buying a duplex and living in the one side rent out the other side. Any thoughts are welcomed and very appreciated. We aren't going to be doing anything until January or February is our action taken time line. We are very new at this.