Looking for advice on my second investment

[John Daly]

Hi everyone! I am new to these forums and pretty new to bigger pockets. I have an above garage apartment behind my house which I rent out. The house is about 1.5 years old so I have been a landlord for that long. I'm getting $1000 per month for it and I have an excellent tenant. I'm looking at a house in an up-and-coming neighbourhood here in Chattanooga. The asking price for the house is $120,000. I'm thinking about the BRRRR method and I would like to buy something in that area that would generate an income. My daughter will start going to the University nearby in a few months. Instead of paying rent on student accommodation, I would like to buy this three bedroom house and have her friends rent the other two rooms. I have equity of about $280,000 in my home and roughly $15,000 cash. Any advice would be greatly appreciated. The prospective rental house needs some cosmetic work and maybe an AC unit upgrade. What type of loan should I apply for? Should I even pursue this? I am a newbie, so I will be grateful for any advice given. Thanks!