Using Equity for a Down Payment

[Ben Healy]

Hi Everyone!
I'm sure it's been done before (and I'm sure there is a BP book about it), but I wanted your opinions. I'm looking to purchase a multifamily (2-3 family), but I don't have much cash to put down. The mulitfamilies in my area run from $500-800k. I do have almost $200k in equity in my home. My plan is to use that for a 20% down payment on a conventional loan. My questions are :

1. Is that a good idea? Is there a better method for someone doing their first deal?

2. If I were to start an LLC, could I still use my personal equity? Would I still be liable personally for my home equity loan?

3. In your experience, is it hard to find deals that work when you are borrowing 100% essentially? 

Thanks!
Ben