Adding the current mortgage and utilities would be roughly $1,350 resulting in a profit of $650/mo.That a pretty good amount of profit/cash flow to apply to your mortgage on a larger house.

Only an investment team can provide the crucial local knowledge you need.Moreover, you'll need various resources to find, validate, inspect, renovate, and manage a property.

The OP would have to let us know if she worked through one of them though.The larger are well known TK resellers/marketing companies are:RTRHartmanreal wealthMaverickNorada Most of them also do other things than TK  and some of them are also principals in the transactions not just marketers. 

In the past few years I've had some larger tax billed at the end of the year and I'm brainstorming ways I can reduce that burden.If I'm able to pay of our primary residence or a rental property, which should I choose?

Cities like these offer untapped potential without the intense competition found in larger metros.3.

But most of these bridge loans have future funding components where the lender will fund renovation work as the work is completed and add that to the loan balance. 

If properties in that area tend to appreciate more slowly, especially if you can't start renovations immediately, you may sit on that investment watching potential profits get eaten away at slowly as inflation passes appreciation. 

If so, how are you managing the renovation.

As it stands now, the sweet spot in that area in the market for rent seems to be a little larger 2/2 house with large living area for guests.

Focus on what the rents will look like post-renovation with 4 units instead of 2, and have a clear game plan for refinancing to pull your capital back out.