Thanks! Yes, I'm in the US, and I had a really hard time finding a lender who would do a non-owner occupied HELOC for a home valued at less than $50K. I'm in an area with low home prices, but decent rent (high demand due to nearby universities).
I was ready to buy my second rental, and needed to leverage my first income property (owned free and clear) to get the cash for the down payment. I had more equity in the rental than my primary residence, so that's just how things worked out. The cash flow from the two properties should help get the balance paid down.