Assuming you have a loan on that property you co-own, you'll need to "extract" that equity somehow and convert it to cash to be able to use it on another property. 

The most I would see is using is $50k and we would convert that to HELOAN after closing on the next house and aim to pay that off in a year or so (ASAP).

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Due to the nature of the STR property criteria in Cape Coral, it's very rare that a STR could be converted to a successful LTR.

When converted to US dollars,  it is deposited into your bank account.

.- Converted to a rental in 2024; initially rented for $4,750/month, but tenants moved out, and the soft Bay Area rental market has made filling it challenging.

But, VA is the only "owner occupied" loan type that you can actually refinance after you have converted this to an investment property! 

I have one in Brownsburg that is similar, but there is a house and a converted garage on the same property. 

Brick v.s siding and covered v.s no converted parking also make a large difference and are items that have to be adjusted for. 

Condo convert this so you will separate the property into 2 APN's thereby, somewhat, making it exempt from rent control  if done strategically.