I own one rental property free and clear in an undesirable area

[Joshua Brucher]

Looking for some startup recommendations. I own a single family home approx 1,600 square feet. I inherited this property from family, own it free and clear and it is in my personal name. The property is in an undesirable area that is going downhill quick. The home is worth roughly $60,000 and is occupied for $800/mo (no utilities included). I have invested in real estate in the past and have done one flip. After researching and preparing for over a year I would like to leverage this property and begin to establish a portfolio. My main goal is long term rentals (single/multi whatever). I am looking for some insight on what to do with this property. In an undesirable area imo it makes the most sense to sell the property, form an LLC and deposit this money to the new company bank account. In the mean time, look for ways to buy real estate below market value, add value, establish equity, pick the best exit strategy and so on. As an investor, this $60,000 in my pocket is more appealing and beneficial to me for a real clean start in the investing world. Rather than have a depreciating asset in an undesirable area?

Another option is to leverage this property with the bank. Use my 100 percent ownership to borrow money toward a new deal. With an expected value of $60,000 and $800/mo income before taxes etc there isn’t much room for leverage.

Thoughts?