Financing Fear! (don't want to screw this up)

[Jim Cousino]

Hello BP community! I am a first time poster/contributor. I have been reading REI books, researching, listening to podcasts, and window shopping. The current times present increased opportunity and as such, I think this (or very shortly) will be an excellent time to jump into this real estate investing. Here's my question:

I don't know how I should structure my financing for my somewhat unique situation- I have a HELOC on my primary residence (equating to $109k, = ~40% of home value); and I have $90K available in cash. To start investing in buy n hold rental real estate; should I:

1) put the $90k into my HELOC to pay it down then use that line of credit ($120k) to finance my deals? (HELOC is variable rate- prime)

2) use the $90k as my investment fund to use for "make-ready" costs, closing costs and 20% down on 30 year mortgages on multiple properties? (fixed rate) 

3) use the $90k to buy property outright, then finance with 30 year mortgage after I take ownership and pay myself back the $90k that way one rental at a time?

The various ways to approach this has me uncertain and nervous. Any insight to my circumstance would certainly be very much appreciated!

Stay well, God Bless, and Thank you!