Advice on financing for rental property purchase

I am looking for financing (perhaps home equity loan/line of credit) to finance the purchase of a rental property at a price up to about $120,000.
This will be in NJ, where I live.
I own my house (valued at about $240,000) outright (no mortgage).
I have liquid assets of about $115,000 and an IRA of about $133.000.
I am currently not working, which make this getting a loan more difficult. I do have income (Line 37, Federal tax return, 2009 was about $22,000).
My credit is excellent.

I have been shopping around for the last week or so and have had some interest, but as yet, nothing definite,

I would appreciate any input as to my options.

Depends what you want the rental for. If you need the income to live off, then I would keep looking for a lender who will lend on your personal residence. Maybe a HELOC til you establish a rental cash flow and can refi the rental.

If you don’t need the rental income to live off, I would roll the IRA over into a self-directed IRA and buy the rental for cash with your IRA. All rental income would then go into your IRA.

It always depends on what you want. When it comes to refinancing, always take advantage of a better interest rate.

What if the fees associated with the refinance and the proposed length of time you’re going to own the property costs you more than the monthly savings in interest? There are always other things to consider for refinancing besides only a lower interest rate.