Hello everyone, been on here for a bit but first time posting. I have a couple of questions. I purchased my home back in 2002 with my father. Both of us are on the loan because his credit was not good at the time but only he is on the deed. The reason is i wanted to buy another house within a couple of years and thought I could qualify for first time buyer by not being in the deed and well that never happened. We have vastly outgrown this house. We owe about 130k in the mortgage and the houses in my neighborhood are going for about 430-500k. We have considered renting but we had some work done on the house that was not permitted so it is a big concern for us in renting it out. We converted a den into a bedroom, added a closet to this bedroom and added bathroom to make it like a master bedroom. The house still needs some work, the kitchen has to be redone. This is where I am seeking advise. We are considering four scenarios:

Scenario 1: My Father and I sell the house through listing with an agent as is. Obviously take a hit based on needed renovations and full disclosure on permit issue. When it sells put down about 150-200k on 400-500k house closer to work and double the square footage of our existing house for about the same payment. Also use some of the money from the sale to wipe about 25k worth of debt in the process.

Scenario 2: Do a cash out refinance, pull about 150-200k from equity fix our house and try to get all permits squared away then rent the house and use left over for down payment on another house. Rents in my area go from $2000-2500/month

Scenario 3: Get a Heloc of about 175k Demo unpermitted portions and rent our house out. Put down money from heloc on another larger property.

Scenario 4: cash out refinance, demo existing unpermitted areas renovate kitchen and sell the house for maximum profit and purchase another home.

Trying to achieve two goals first is get my family into a more comfortable house and once the dust settles, I will be looking to buy a property out of state and start doing brrrr for the long term.

Thank you, looking forward to hearing your thoughts.