Pay Cash, Lose Your Tax Deduction?

[Emilio Ramirez]

I recently read somewhere, I think in Edelman's book, that if I bought a property for cash and then took out a home equity or some kind of note that the interest is not deductable versus if I purchased the property straight away with a down payment and a mortgage. Is that true?

What about a second? Is the interest deductable there?

Thanks