Is this a good move? Help a noob out!

[Corey C.]

I've had my house for two years. Bought it for $179k owe $171k and it appraised 3 weeks ago for $193,500, but if we add a closet to make a 4th bedroom the REA said it could have potential to sell just above $200k.

Should I take the equity and pay down debt and keep the house and save the extra money after paying down some debt until I have enough for a down payment for an investment property?

or

Take the equity and use it as a down payment for an investment property now and pay down less to no debt. 

Also, should I do REA for the sale of my house or For Sale by Owner? I'm trying to maximize my savings.

[Anthony Dooley]

@Corey C. you are talking about $20K max in equity. After the cost of a refinance, it isn't enough to really make a huge difference. I suggest a tighter budget and a side hustle to generate some additional income for the short term to pay down consumer debt. Then save the money you were putting on debt to put on an investment. Keep in mind, we are at the top of the market cycle, inventory is low, and interest rates are creeping up. This is the most expensive time in a decade to purchase property, so unless you are getting it at a discount, it isn't a great investment. Pay down debt, save money, and watch for a dip or correction.