Inherited Rental (HELP!) Duplex

[Dominick Marschall]

Hi There, 

I recently inherited a duplex in Minnesota. This was a property my family member lived in. I did some work and recently signed both leases. The property is valued at 195k. I owe 89k. The total gross income from property is $1850. Mortgage, interest and escrow is $1030 a month. I also pay for trash ($50), so I cash flow about $770 before maintenance each month. The mortgage is an adjustable rate currently at 5%. The mortgage company told me I could assume the loan which my financial adviser said might be a good idea in my situation. 

I currently rent at a rate of $1200 per month. I want to continue to build my portfolio and i think a reasonable next step would be to purchase another duplex as an owner occupied and one I'd actually like to live in. I have 10k for emergency for my rental, 5k for my emergency for me and about 4.5k in liquid investments. 

What would you do in my situation? should I take out equity to pay down 20% on another duplex?

Thanks for your help! Any additional insight would be great!