Starting My Real Estate Journey: How Can I Leverage a Paid-Off Townhome?

[Hank Bank]

Hi BiggerPockets community,

I’m just starting out on my real estate journey and could use some advice!

I currently own a single-family townhome in a great area. The property is fully paid off, as it was essentially gifted to me. While the townhome is in good shape overall, it does need some mild cosmetic updates to bring it up to rental standards.

My goal is to leverage this property to start building a real estate portfolio, but I'm not sure what the best first step is. Should I focus on fixing it up and renting it out? Should I explore options like a HELOC or cash-out refinance to free up capital for other investments?

Any insights, advice, or strategies from those who’ve been in a similar position would be greatly appreciated. Thanks in advance for helping a newbie get started!

Looking forward to hearing from you all!