Private Lender or Pull Money out of my current property? (Heloc)

[Michael Williams]

Should I use a private money lender or pull money out of my current investment property to use as a down payment to purchase my first commercial multi family (5-10) unit property in Sacramento, Ca? I've just spoken with a lender today and he told me to look into a heloc and pull money out of my currenty investment property, I can easily pull $200,000-$300,000 out of the house. Or should I use a private lender? 

[Cameron Tope]

Hey Michael,

How does your cash flow look on your first property after a HELOC? You don't want to get yourself into a situation where you have negative cashflow.

If you have plenty of cashflow on the first property, then use the HELOC to buy the next property. Then refi the new property later and payoff your HELOC.

Thoughts?