Getting Started - What woud you do in this situation?

[Bob B.]

Hello all!

I'm eagerly trying to cram as much info as I can into my brain as I dive in and I am already (as I'm sure everyone is at this stage) eager to go out and find deals upon deals upon deals.

I realize, though, that I need to set myself up best I can in order to have as much success as possible. So I thought I would see if there is feedback out there for my situation which looks like this:

Currently:

- Employed full time and make over average salary. Goal is to increase passive income and capital over time.

- Own a single family home which is only major debt. It was purchased slightly above market price at around $210k in 2013 and sites such as Zillow and redfin now estimate its value around $240k. I also have roughly $1.4k available in mortgage ins. if I either pay to re-appraise or end up selling in the next year or so.

- The home is currently a rental. Tenant pays all bills. Mortgage + ins + taxes are around 1,250/mo and rent is currently 1,350/mo which is a bit below market value but I have had very good and consistent tenants for over a year now.

My question: As I get started as a serious and informed RE investor (still have a ton to learn, thus the reason for my question here) would it be a better move for my pre-existing asset to either:

1. refinance and invest the earned equity into 1 or more additional properties

2. sell and invest the earned equity into 1 or more addtnl properties

3. Leave as is and/or increase rent at next opportunity and scrounge up enough capital elsewhere (I have over 10k liquid and available but not sure yet how much it takes to really get rolling in the business)

Lastly, as one of my goals is to build a portfolio that provides passive income over time, the reason I'm somewhat inclined to sell or other option is because I believe it is nearing its peak in value without investing and updating it. But it can provide positive cash flow each month and the rental market in the area is fairly strong. 

I feel like if the market were to turn or this home does peak, I may miss out on an opportunity to grab some extra cash for my early investing days. Or is that much cash not extremely important starting out? Or should I just be patient and save via other means to fund my first endeavors?

Thoughts? better to take the equity and run with it? I am curious  what you think would be best for someone who is getting started.

Thanks for reading!

Bob