How to best leverage a payed off rental property - What would you do?!

[Garrett Gahn]

Hello BP!! 

I'm a new investor looking for some advise on my current scenario.. 

I have one rental door in my portfolio. Its was a disgusting and neglected home I inherited. I spend summer of 2020 completely renovating the entire property myself. It has since been rented and I'm just about to sign a new tenant at 1250/month. 

My question is where do I best go from here to grow my portfolio? Since the home is free and clear I am considering if pulling a cash out refi (or DSCR) to free capital to brrrr on the next deal is the right move? I would obviously be sacrificing hard cash flow though since I would then have two homes with two loans rather than one free and clear.

Id like to make clear that my niche market is heavy on cash flow given how very low the rental inventory is, and appreciation is slow due to the rural nature of the area. I grew up here, I know the market very well and have a contractor Ive known for years. 

I know that there are so many (and more effective) ways in which real estate builds wealth rather than just cashflow but still simply trying to wrap my head around the best way to start building my portfolio. 

Thank you in advance for any insights!