Want to buy a residential rental property for $150,000.
Rental property is 3 units and would not be owner occupied.
Property is already leased to 3 tenants and generates $1500 in rent monthly.

Have very little cash to put down, but own a home and have about $70,000 equity (roughly 20%).

1) Should I even be considering this?

2) Would I even be able to get a loan? Can I borrow against the equity in my home?

Thanks!

Don't be offended, but you do not sound very experienced in owning rental property and to risk your equity in your primary home may be unwise. That being said, I would consider making an offer to the seller...asking for owner financing. Perhaps you could use a low interest rate credit card to raise the cash the seller would ask and the plan to refinance the property in a year or two. There is also the issue of needed repairs and does the income cover the expenses on the property going forward. I will NOT buy any rental property without seeing one or two years of federal tax returns from the seller to confirm what the actual costs are to operate the property. Owners do not lie to the government on their expenses. Just some comments.