We did borrow $20k on this deal to not spread ourselves too thin since we are just starting out and do not have a lot of liquid capital right now.

I am planning to liquidate a couple to put into the down payment.

I dont know that I would give up the liquidity unless you also plan to recast the mortgage to lower your monthly payment (or can get a line of credit on the property to pull out the 60k equity from the cash).

@Ali Harris, this is probably my favorite part of real estate investing: seeing the potential in a property that isn't readily apparent to most other people, and then executing a plan to bring your vision to life - so cool to hear you're exploring this!

I also have low liquidity to start with but I'm growing the account as much as I can.

@Kyle Z.I’m cool with only 7-10% CoC.

We would like to keep our home now and use it as our first rental property, but we are unsure if we should just liquidate it and take the proceeds.

How cool!

Hey Lucas, You could finance your first BRRRR and it may be a smarter strategy than deploying all of your liquid reserves into one property for the next 3-12 months (Depending on the loan for the refi). 

Although temps in the Smokies are not as cool as Angel Fire, they aren't bad.