What to do with a property worth under $40,000 w/no mortgage

[Tiffany Durr]

I currently have a home in a small town in the deep south that is worth about 40,000, if that. I inherited the property, it's a lil shotgun house and it doesn't have a mortgage. Trying to see how I can use it to grow my real estate portfolio, this is my only property btw. Should I take out equity in the home towards a crash pad and/or doing some minor upgrades on the home OR should I save up to get into air BNB arbitrage to increase my money flow and put that towards fixing the home and eventually obtaining a crash pad. The long term goal is to put less than $10,000 into fixing up the property and I eventually want to obtain a crash pad. Any thought are greatly appreciated and welcomed. ☺️

[Bill B.]

Sell tax free and use the money as a downpayment towards a nice home/househack/investment property. You won’t be able to borrow against a home in that price range. Plus most of your wealth will come from appreciation and that home is obviously not appreciating. 

[Tiffany Durr]

Quote from @Bill B.:

Sell tax free and use the money as a downpayment towards a nice home/househack/investment property. You won’t be able to borrow against a home in that price range. Plus most of your wealth will come from appreciation and that home is obviously not appreciating. 

Hey Bill

Thank you for your insight and response. 

[Tiffany Durr]

Actually I do have another thought. I would like to keep the home because it is a family home. Would you consider raising money via arbitrage/short term rentals to do minor upgrades and invest in another property. I saw a Bigger Pocket podcast episode that suggested arbitrage as a great way to raise funds for real estate investments and projects. Again any information/suggestions you may have are welcomed.