I would also encourage you to have a small HELOC - just in case. 

@Samuel Mechail start talking to mortgage brokers and take a look at fintech companies there are a few that are doing HELOCS now.

In addition, I am looking into a HELOC as well.

Seasoning on a HELOC is the main rub.  

Should I get a traditional mortgage and take cash out, or a HELOC on this property.I have a long term tenant already whose lease payment can pay down the mortgage/HELOC.  

Rates on heloc are usually a little higher.

Using that surplus for a down payment or renovation costs on the new property is definitely a better move than letting it sit in the bank.The HELOC Trap:Be very careful with the HELOC strategy.

i can do HELOC through my licensed lender i work with

As a side note, if you sell and purchase a new home in cash you can access that equity later on with a HELOC or cash-out refi if you want to tap the equity and use it to invest further. 7.

The Heloc - is it on your personal residence, or a separate property, or will you attempt to get a new line of credit (loc) that is secured by your new investment property (which is not technically a heloc)?