Beginning Investor Looking For Advice

[Donald Balcom]

My wife and I are recently in the process of purchasing my grandfather's house on the lake (in a cove in a beautiful location) in Ten Mile, TN (30-35 min from Knoxville, TN) and we are getting it on a refinance through a lender because I am a partial owner of the property per my grandfather's will. The house is an A frame that has 2 bedrooms, 1 bathroom, a loft, and a 700 sq. ft. unfinished basement. The house also has two docks (one covered). The house appraised for 220k (mostly based on location) and we are getting the property from the rest of the heirs for 168k, so we do not have to put 20% down on the property because the equity. The only money we have to put in is for the rehab. The house was built in 1974 and my grandfather never really updated the house. He kept up with all of the major things, (plumbing, roof, HVAC, electric (needs new box), etc...) but did not with the little things. Same 70s carpet, kitchen, wood paneling throughout, and an unfinished basement that already has roughed in plumbing for an additional bathroom, never been painted since he owned it, a hilly gravel driveway that only 4 wheel drive vehicles can safely navigate to get out, unless it is re-graveled every year because of erosion.  

Our plan is to rehab the property by investing somewhere between 40-50k to updated and finish the basement with an extra bathroom and bedroom (yes, it has ingress and egress in the basement with a slider door and two decent sized windows on opposite ends). That will put us a little over 200k total with 40-50k of it being our own money for the rehab. We have already run comps in the area and if we rehab the basement with updates in other places in the house, we believe it would sell for 340k+. 

With that being said, my question is what would make the most sense for us to do with the property? I would really like to AirBnB/VRBO/Homeaway it, refinance, and use the 40-50k from the refinance to invest in another property and so on (Brrrr it). However, we could also flip the property and make close to 100k profit and use that to invest in 1, 2, or 3 other properties. Would really love some expert advice. I have used AirDNA (free version) for the area and at 40% rental rate, we could make around 30k gross income based on other similar properties in the area. I believe we could out perform the other properties based on the rehab and what we could offer...multiple porches, docks, great parking (once paved), access to a marina you can see from the house, etc... I would really love some expert thoughts on this investment. Thank you!!!