Rental Property Financing advise
Here is my situation:
Moved from first home and have rented it with a +cash flow of about $200/mo for the past 4 years. Currently owe $91,000 on the $150,000 property.
Due to amazingly generous relative, we own our current $190,000 home outright.
We have just been blessed with $100,000 from an inheritance .
Our bid to acquire a property which we can absolutely rent for $1,000/mo was just accepted for $95,000.
My question is this- Should I pay cash for the 20% down payment or should I take out a Home Equity loan on the first rental property to keep the cash in my account and possibly acquire addition properties- should the right one come up?
I have been advise to take a HELOC on my residence, but that seems like an awful option to me.
Thank you in advance for your suggestions. I know I have been blessed more than I deserve and I just dont want to screw this up.