In areas with rapid and sustained appreciation, you can use the equity gained through appreciation to purchase additional properties.

Get the property in your name, make sure that the seller is an additional insured.

If it were us, we would keep the property and take out loans against it for investing in additional industrial property. 

I currently have a homeowners plan with Allstate and plan on asking them if they have something like a short term rental rider plan that I can add in addition to my current plan.

@Mark Toweya couple things - from the seller's perspective, it means the seller doesn't have to wait the full 30 years to get the proceeds, and from the buyer's perspective, hopefully in that 5 years appreciation and maybe some updates have increased the value such that when you refinance you don't have to bring any additional cash.  

I recently completed one on a multifamily property and found it to be a cost-effective approach.That said, there are a couple of additional factors to consider beyond the code differences between a garage conversion and new construction:Coastal Overlay Zones – If your property is in a coastal overlay, building a ground-up ADU may require Coastal Commission review, which can add time and complexity to the process.

This will additionally impress the seriousness of the issue.

In addition to the different tracks @Chris Seveney descrubed, there is also good information on creative financing and seller financing (including what to avoid).

Additionally, small loans like you're describing are not looked kindly upon by lenders because they're doing the same amount of work as they would on a $500k loan but for a fraction of the yield.

In addition, as others suggest, guest damage insurance such as proper or safely would be good, for those bookings off Airbnb/vrbo where guest damage coverage isn’t available.