Second Investment Property Strategy

[Sierra Fox]

Hello,

I'm very new to the game of real estate! Our strategy is buy and hold. After a couple years of researching and finally making the jump - we purchased our first rental property - SFR last month. I found a second investment property - SFR for $30,000. I'm stuck on how to fund this without making mistakes.

Scenario 1:  I tap into my primary home equity line w/ 12 mo paying only interest at 3.25% I will lock in the rate and pay back 20 yr term and still have remaining equity for improvements or purchase of another rental.  

Scenario 2:  I pay $9000 cash for down payment and closing cost and go with a conventional loan.

What would you do?  Any other ideas??  Thank you in advance for your help!