Which Route Should I take to Start Investing in Rental Property?

[Jessica Avila]

I live in my 3bd 2ba home in Clayton, NC. I've recently subdivided a .25ac lot beside my home. I bought the land for $10k and the market value is @ about $60k. I sell building materials for a living and could get lumber, windows, trim, doors, drywall at cost. I have three questions. 

-Should I sell the lot? 

If I sell the lot, I could either get out of bad debt completely (~$45k) or use the money to try to Brrrr a home/duplex. 

-Or should I build a home to live in on the lot and rent out my current residence? How could I go about using the lot as a down payment to start the construction loan? Would it be best to pull out the equity in my current home (~$118k) to build the house? 

-Is there any advice on a better way to use the equity in my home or the land to start my real estate investing dream?