If I have a paid off home and want to buy an investment property, should I use the equity in the paid off home?

You should contact your CPA for the best advice, but as a fellow investor, I found it best to finance the investment property and leave your primary home alone. Tax laws and write offs are more favorable on the investment home vs. primary residence. WilliamAcres.com

The bulk of people would agree, keep your primary home safely separate from any investment property. God forbid anything goes wrong with the investment, you don't want it to make you homeless. While mortgage rates on investment homes are just slightly higher than a primary home, don't chance it. www.MnBestRates.com

Ditto - that's good advice.

NO, Take loan to buy investment property this will be an investment and you can maximize your tax deductions with an investment property.Contact us if you like to get moving on this opportunity 888-354-3299 , ballen@accessnational.com, www.accessbrian.com

All of these answers are valid, but you should check with your CPA about the strategy that makes the most sense for you. One strategy I have seen used is to borrow the cash from your primary residence. Generally, the rates and fees on a cash-out refi of an owner occupied home is less than on an investment purchase. The cash is then lent to an LLC you establish. The LLC then pays cash for the home and title is held by the LLC. A single owner LLC is treated similar to a sole proprietorship for tax purposes. Your loan to the LLC is secured by a properly executed Note and Deed of Trust, with the note to the LLC bearing the same interest rate as the mortgage Note. Your CPA should be able to help guide you to doing this properly. Work with a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com