Advice for $250,000 in equity - looking for next steps
Sorry for the long post.
I am new to real estate and looking to grow my portfolio.
WHERE I CURRENTLY STAND
I have a house that we have operated as a short-term rental since August 2022. I grossed ~$29k and net somewhere between $22k-$23k the first year. I have no mortgage on it and it would sell in the $250k-$270k range.
I recently purchased another house and am currently remodeling it with plans to operate as a short-term rental as well. I did a cash purchase with borrowed money and will get a mortgage once the renovation is completed. This one will be a bit of a failed BRRRR because I want it to be really nice since I plan to use it as a short term rental, so I'll likely be leaving $20k-$35k in it depending on the appraisal. Purchase price: $158k, after renovation will probably be in it for around $215k. I'm hoping for a $250k appraisal, but that's hoping.
Next steps from here… The house with no mortgage is successful on Airbnb and we are usually the first listing in search results in the area. The house isn’t in a great neighborhood so I’m not sure how appreciation will be for it versus other property elsewhere in the long-term. I want to utilize the equity in it to buy more, but I’m not sure if it’s better to cash out refinance and hang on to the successful Airbnb or sell. Any specific direction for what I should buy with what I have available?
Honestly, I would love to find a mentor to walk with for a bit to help me get to the next level with what we have.
Thanks for any advice!