Another newbie here. Own 1 house, looking to take the next step!

[Marten M.]

Happy New Year everybody,

I've been browsing browsing BiggerPockets for quite some time, but this is my first post and I'm looking to get some advice on my situation. Before getting too involved in the numbers, I'll give you all a little background about myself - I'm 29 years old, currently own a fully paid for 3 bed/2 bath SFH in the Tampa Bay area and while open to going other routes, I'm leaning towards investing in additional SFHs and renting them out.

I apologize in advance for the long post, but I want to give as many details as possible. This is kind of a two part question, so I'll start with the current home I own. 1/3rd of my house was left to me and in 2017 I decided to purchase the remaining 2/3rd's and move in. I currently live here now and in 2018 decided to rent out one of the 3 bedrooms for $550/mo + utilities. Financials on this purchase are as follows:

Property was appraised at 184K. I already owned 1/3rd of this so I only paid 123K (not sure how to calculate this when analyzing the investment). After the purchase, I spent 9.9K on a new roof and 1.3K on the AC system. I haven't had the property appraised again, but per the 2019 County Property Appraiser the Just/Market Value is 232K. 

The house is pretty dated and would likely need a full renovation - floors, bathrooms, kitchen, etc. I was quoted roughly 50K for this project. I'm not sure what the ARV will be, but similar houses in my area have recently been selling for ~300K and I believe I could likely rent it for ~2.2K/mo.

Question #1 - Funding: In order to fund the ~50K renovation, I'm going to need to take equity out of my current home (keep in mind I own the house outright, have no other debt and have somewhere around a 740 credit score). Additionally, I'd like to put 20% down and invest in another rental property this year. I do not have another property lined up to purchase immediately, so I will be in the market for an unknown amount of time. Should I take out only the amount for the renovation and try to fund the 20% investment on the unknown second property separately or do it all in one loan? Secondly, should I do a HELOC, HEL or an alternative?

Question #2 - Living Arrangement: I know that while I'm living in my current home, charging my roommate low rent and not renting my 3rd bedroom I'm not maximizing my ROI. When I do purchase a second property (which will likely need renovations as well), should I just move in there while the work is being done and rent house #1 or stay in house #1 and wait until the reno is done, at which point I would attempt to rent that property. I'm not thrilled about moving and like my current home, but I am willing to make the move if it seems like the smartest thing to do financially. I don't plan on living in house #1 forever anyway.

I'm sure I'll have many more questions but I don't want to be overwhelming. I greatly appreciate any advice/insight anybody can offer!