Turning my current residence into my first investment property

[Nathan Steinacher]

I am finally making my first post as I am preparing to make my initial dive into RE Investing! I currently own a SFP here in Indianapolis that I purchased 3.5 years ago for $190K. At initial purchase I rented out a few of the bedrooms and house hacked before I ever knew what it was called. I now live in it with my wife and she wants to move to downtown Indianapolis for a year while I want to start a RE business so this house is now becoming the first property in my portfolio and we both get what we want. Our realtor came by and said we could sell for $250K or rent for $2K, which will produce monthly cash flow of $700 after everything. I think $700 cash flow on my first property is a great start so I am preparing it for rental photos and the transition to a downtown apartment but I would like some insight on how I could use this to expand.

I am reaching out because I am torn between the following options..... 

1) Keeping this in my name and cash-out refinancing since I owe $174K and could get around $30K cash for my next property and I could buy this downtown property versus renting. I would be extremely leveraged and a bad tenant could ruin this all before I ever get to home #3. 

2) Selling it and taking ~$50K in tax-free profit that I could use to begin the BRRRR (Wife's Favorite)

3) Creating an LLC and moving it under that business name even though I have a 3.25% interest rate, not including MIP of $125/month , and all commercial lenders are giving me 6.5% and higher rates. In my mind I would need the benefit of no personal guaranty to make this work.

4) Just renting it and not touching the mortgage. Then renting an apartment downtown while I hoard cash to pay for my next property as I wouldn't have the cash reserves to buy again right away. I am afraid if I take this route I will rent for a year or two and then everything I save will be used for our forever home and next thing I know I am 4 years down the road and still have only one rental and one primary.

All advice is greatly appreciated. I have been a long time listener of the podcast and read a lifetime's share of real estate books and I am confidant I want to use the BRRRR strategy to begin building a portfolio. I currently work a full-time job and I also own a small CPA practice that a I started a few years ago that has two full-time employees and it only requires my time during tax season. I would like to be as hands on as possible in the first purchase while also maintaining my status as an investor (if that is possible) so that I can learn as much as is possible with the renovation process.

Thank you!