With 40-60K in equity you could explore selling to reinvest but it depends on what deals are out there compared to yours

I'm interested in learning about rental property investment, looking to build a rental portfolio, exploring real estate investing to replace my income.

Also consider networking with investors active in those areas who can provide insight on what’s working.

If it is last rental rate charged, then you may have to get creative to accomplish what you want to while still working within the law.Here's an idea to explore.....If it is a 10% increase over the last rental rate you charged, consider using a step pricing lease if allowed by your state. 

In addition I am giving him freedom to explore (to a certain extent) on my dime.

It's been a long-time dream to do a new build and so I'm actively working to find land and begin the process.I agree that the profit margin you post seems very small.

House hack is not practical for everyone but worth exploring

Currently active STR Lessons learned?

To avoid unnecessary liabilities, delaying acceptance or exploring a cash alternative may be the safest financial option.This post does not create a CPA-Client relationship.

Leverage equity, explore house hacking, and continue learning through books, podcasts, and local networking to refine your strategy.