In need of some ADVICE

[Brandon Elliott-Pandey]

Hello my fellow investors. I currently have a mid term rentals for some temporarily displaced home owners in CO. There lease will be coming due in a few short months and once their home is rebuilt I'll have an empty home again. Little more context and background for my question to make the most sense. The unit use to be a long term rental and the tenants home had burned down in a fire. They moved in and brought all their remaining items and what the insurance company was paying to replace. Once they move out I'll need to furnish a 4 br 2.5 ba to continue on a midterm rental platform or switch back to a long term and have lower cash flow.

My question is, if you were in this situation what would you most likely do?

1) Use the existing cash flow to have as a large emergency fund and transition back to a long term rental (~$500/m cash flow= $6k/yr profit)

2) Furnish the unit with the ~$15k-$20k for a short term or mid term rental that would be a 4br 2.5ba (Mid term rentals typically seem to like smaller units in this area and the AirDNA shows I'd barley cash clow higher than the roughly $6,000 I'd bring in with the long term rental ~8k/yr).

3) Sell the unit and 1031 into something bigger. I have roughly $80k-$100K in equity and would like to scale into another market but because CO is such an appreciation state I'd rather not sell a potential equity building machine before really allowing the equity build up to happen.

4) Lastly, I am thinking of changing my mortgage into a Heloc and being able to utilize the equity that way. I'd have roughly a $40k dollar line to use for other acquisitions, etc. The downside would be releasing a record low interest rate and fixed financing that is easily paid off over the life of the loan.

Any additional options would be welcomed as well and thoughts are greatly appreciated!!! Also, should you need more context feel free to ask away in the comments below!

TIA!