Advise needed: determining the next step

[Justin Zoeller]

Bought my first home for $88k, 8 years ago. Moved into a bigger home just last October but still own my first home with $74k left. I rented out my first home in October for $1000/month on a 1 year lease. Payments on that home are $707/month. $293/month cash flow. Ive decided to start real estate investments but Im not sure where I should go from here.

Do I save up and buy another property and keep my first home? Do I cash out refi my first home? Sell it? To help, my first home is only 750 sq ft. 2bd 1bth. Small home for sure and I feel like I wont be able to keep renting something that small for $1000/month. Therefore, I’ve been debating a cash out refi if its worth it and adding a bed and bath onto it to keep the cash flow the same or even more. Just stuck and not sure how to start. Any advice would be tremendously helpful. Thank you all!