Parents Helped Me Out - What's Next Move?

[Braden Parkes]

Hey All,

So I'll try to keep it as brief as possible while still providing the necessary info.
Parents sold me their 3bd, 3br 1600 sqft home in Los Angeles (San Fernando Valley) for a roughly 15% discount from it's market value.
(Bought home for $575k, worth about $650k when I bought it).
I put 5% down with 2.99% interest with Finance of America.

I'm a single 28 year old male, and thankfully my career made it possible for me to afford the home, even with the generous discount.
I closed on Dec 31, 2020.

Been here for the last 6+ months, have the third bedroom & bathroom (converted garage) rented at $1350 per month which is great. 
Letting my best friend stay in the other bedroom & bathroom for now, I wanted the company and he wanted to get out of his crazy parents' house, so can't rent that one out for now, which I'm fine with.

My main question is this...
What's my next move? 
My instincts tell me to live in the house for the next 2-5 years, consistently improving it where my dollars will count the most (kitchen, bathrooms, backyard), and eventually sell it, and take the profit and put it into a more expensive home in a better area for raising my future kids etc.... but this feels short-sighted..?
 
I've done some reading/listening to BP podcast on BRRR, rentals, etc... and am very interested. I'm just not entirely sure how to take this amazing gift of equity that my parents gave me and get the most long-term wealth from it.


Thanks in advance!
I'm here to answer any additional questions/provide more clarity on the situation. Appreciate it guys & gals :)