Refinancing for an inherited townhouse

[Slater Pope]

So I’ve found myself in a bit of a unique situation. I recently inherited a fully paid off 2bd, 2bth townhouse estimated price is $140,000 in a decent location right outside of Albuquerque, NM renting for $800/month. My plan would be to move into the house to cut rent out of my expenses (currently paying $1,100), refinance it, then use that money for a down payment on a multi-family rental. Any advice would be greatly appreciated, thanks.