Inherited Condo mortgage free worth $325,000. what would you do?

[Bruce Umeck]

I have inherited a condo in California worth $325,000. mortgage free and rented out . only paying taxes and HOA fees ( $475/month) Rent is $1795/month . I would like to purchase a property using some of the funding available from this condo. Asking advice on what would be the best course of action in this crazy time of Low interest rates - high property prices here in CA. - should i wait for the market to go down? Should I buy in another state , lower prices . Should I set up this property as an LLC?
I wanted to get any advice from an experienced investor on what they would do if they were in my position.
Thanks

[Alex Bekeza]

I'd cash out refi to avoid capital gains and then use the cash proceeds to go buy more rental properties.