Borrowing against equity offers benefits like appreciation and tax advantages, while selling with a 1031 exchange allows deferral of capital gains taxes and reinvestment into new rental properties.

You can also take advantage of lower down payment loan products rather than going 20-25% down on a conventional investment loan. 

For long-term strategies, a cash-out refinance is usually more advantageous, as it preserves ownership and offers fixed terms.To proceed, start with a professional appraisal to confirm the home’s value, compare refinance terms with traditional lenders, and carefully scrutinize shared-equity program terms to ensure they align with your financial goals.

Took me longer but I didn't like the contractor I used, and unfortunately he took advantage of my kindness.

I’ve worked with investors looking to hold land for similar goals; either to build their dream home or simply take advantage of appreciation.

Here’s how I’d think about it:Option 1 - Proceed with the 1031 Exchange:The main advantage is deferring those capital gains taxes and keeping more capital working for you.

@Travis Boyd Outside of instances where FHA or other extremely advantageous financing options exist I am a proponent of the LLC for investment real estate although the liability piece is overstated.

@Shaylynn O'LearyBeing a realtor you have an advantage of staying local.  

Here are a few suggestions on how you can maximize the wealth of information available: Check out the blogs and podcasts, or take advantage of the search feature (magnifying glass).

The biggest advantage of using someone local to where you're buying is that they will understand taxes, insurance, and similar items very well when it comes to DTI/DSCR calculations and payment quotes, and they will likely have a local network of service providers for ancillary services (survey, inspections, etc).