Before you begin the process, however, you should get pre-approved for a mortgage for the new property to be sure you can afford both properties. You will have to put at least 25% down on the new property.
TD Bank will finance an equity loan/line on investment property. This would avoid the cost of a refinance (approximately $3000.00) which would need to be factored in to your cost estimates. Plan on a minimum of 20% down. If you currently have a rate of over 6% on your current IP than I would seriously consider refinancing. Also, many banks use a 40% Debt to income ratio when qualifying for investment property loans. Always put down the minimal down payment that will allow your property to float itself even if it is only by a small margin. IMPORTANT** If your potential property does not make money on day one, and you are considering a buy and hold than it is not the right property for you.