What are my options? Refi? Heloc? Other?

[Jacob Smith]

I'm looking for info on how I should go about using the equity I have for capital to purchase an investment property, or if you have other options, why those options instead.

I'm purchasing my home on a 10 year Land Contract for $60,000. June 2019 we will have lived here 5 years. Zillow estimates our home at $140k (I know that can be way off) I'm thinking cash out refi would be an option to access the equity.

I'm not sure of the steps I need to take. We have an eyesore room, it is a bedroom with a full bathroom in it. No walls or dividers.

Is this something I should take care of before attempting to get the most equity out?

Should I do kitchen/bath updating to raise the value before getting an appraisal?

I've been on BP for 1 year, I have attend webinars, listened to podcasts, listened to RE books, I have even done the numbers on multiple properties. I've actually found a SFR that I like the numbers on. Which brings me to my current dilemma.

What would YOU do?

(I'm sure I'm missing some needed info, please just ask)

Thanks for taking the time to read my post. I look forward to the replies.

Edit: I was told to repost in here for info on getting a HELOC, that it might even be possible to not have an appraisal. This would allow me to access the equity for an investment property aswell as taking care of the eyesore.