Another possibility might be to use that equity to buy more rentals (to generate more passive income, so you can work less), hire a professional property manager so they aren't draining your time, and then re-think your work-life balance.

I'm focused on generating cash flow from my portfolio for financial freedom.

Put it back on the market to start generating income.C.

So I'll probably try Facebook and Craigslist and see if that generates the required interest.

A special note, if a home owned by an LLC or trust is used as a commercial enterprise (income generation or business enterprise), the LLC or trust will need commercial coverage.

However, if the rental property goes from showing a profit as it does now to generate a net loss due to the interest deduction, your losses may be limited to passive losses. 

We have started looking into the area and have learnt there are properties under $40k and generating rent around $800.

One thing to consider would be reach as big as you can on your one FHA (you can look up what the fha limit is for each residence type in your area), maximizing your buying power, then if you’re looking for another property you’ve got a big multiplex or rental on an FHA helping you generate cash to buy the next, which can be I.

It will cashflow fairly well and will generate a higher return for my money without weighing down my DTI since it won't be reported to the credit bureaus. 

They are not liquid like your stocks, but because of that they are less volatile and can preserve generational wealth (kids will spend cash but they can maintain wealth if you are passing down units of investment in commercial property).