HELOC or 2nd Mortgage

[Kalvin Johnson]

I am going to speak with my CPA about what my best option would be, but would like to hear some input from this forum because there are a ton of bright minded people! I am buying a commercial property for 380K (land and restaurant building) the tenant is signing a 10 yr NNN lease, paying 4K/mo. Pretty good cash flow deal after my analysis. I am thinking of a few ways to utilize my assets for the 20% down payment on the purchase. Currently I owe 300K on my home and it is appraised at 420K. I also own a town-home that I rent out to tenants. I owe 26K and it is appraised for 120K. Which asset would you recommend getting the funds from? My personal home or investment property? From there, would you put a 2nd mortgage on that property or just do a HELOC? I'm not interested in using cash because I don't want to tie up liquid money. I appreciate any input. Thanks!