At the time of purchase, this home appraised at 800k.

Keep the home for 7-12 years, then sell it ( 1031) and get another brand new home after that.

I did a quick search in your general area and found this listing in Lambertville (not right next door for you):https://www.redfin.com/NJ/Lambertville/92-Swan-St-08530/home...Take note that they bought it for $197,000 in January and now have it listed for $499,000 - which might be kind of high, but gives you an idea of what a flip looks like in your area.

Looking to purchase my first home and was initially going to go the traditional fixed rate mortgage without buying down points with the assumption rates will go down in the next year or 2 and I will just refinance.

Despite being aware of the initial no-repair status, I opted for a home inspection, which yielded pleasantly surprising results with minimal concerns, primarily cosmetic.

To get started, focus on discovering deals by networking with investors, pursuing probate leads, or searching for abandoned homes.

I am trying to start doing short term vacation homes/rental properties.

So maybe you could try to find something like that and do Airbnb in the meantime.Subdividing is not super cheap, and vacant lots typically sit on the market longer than homes do, but it could be a good opportunity if you have funds available to purchase the lot and to pay for subdividing services.

I found this page through a simple google search of "how to leverage a paid off home".

@Mike ObrienHow big is the home - $55k seems like an awful lot of $