Do I BRRRR my homes or do I sell them outright? Help!

[John Brooks]

I own two houses that my grandmother gave me. They are both very old 1960's, and need a lot of work. I was thinking of taking a loan out on the equity of one house to fund a tear down of the old house and possibly putting a new manufactured home on the property. Here's where I get stuck, do I just rent that out after I try to refinance the loan or should I sell outright? How do I pay back the loan of repairs if I don't sell outright?