Inheritance and best plans moving forward

I lost my father last fall, which was devastating to me and I have just been avoiding taking care of his estate since then because there's been so much else to do. He worked hard his entire life and when he passed had very few liquid assets, but did leave me two properties. One, a commercial building that's appraised at 1.15M in a desirable location with a thriving business, and the other was his home, which is assessed at about 550K. Both are fully paid off and are now mine. The business inside the commercial building was his life's work, and I will be ultimately passing the business portion onto one of his employees and just serving as the landlord for that property.

I am unsure what to do with the residential property. It is about 30 years old, in mostly good shape (would need to be repainted inside and outside, have some minor issues repaired). I'm less than 10 miles away and it might be able to rent for 3K a month. I grew up in the house and it holds some sentimental value, but it also hurts to be there as it's a snapshot of a bygone world.

My original plan was to sell the house and purchase a rental with more upside, such as something in a vacation area that I could rent out short term and have a place to stay, but 500K doesn't stretch far in that regard. The commercial property will never be sold unless I get into a situation where I have no choice.

So I'm trying to figure out the best way forward with the residential property. Keep it, rent it and leverage it to purchase something else? Sell it and use the money to buy something else to rent? Just rent it and don't bother with anything else?

I don't have an immediate need for cash/liquidity. I own a house worth about 900k with about 250K left on the mortgage at 3.25/30yr. In my IRA I have about 750K, another 200K in investments and about 600k in cash, much of which will be trickled into investments over the next year. I have a job that pays about 170k a year, but AI might torpedo that in the near future. No other debts aside from the mortgage, no wife, kids or siblings to worry about. I did just recently sign up with a wealth management company to help advise me on all of this stuff, but I wanted to seek out opinions of those elsewhere.

I'm in Virginia for context, and the areas I was considering for vacation rentals would be along the Chesapeake bay, which is a huge area with plenty of waterfront property, or perhaps OBX, which I think is further and further out of reach due to costs and associated upkeep with a beach home.