Unsure about remodeling house or building adu first.

[Shaydon Messenger]

Hi everyone! I purchased my first house about 6 months ago and am unsure of what to do. It’s a small home. One bed one bath. With a large back yard. It definitely has space to do an adu. But I’m running into problems with what I’m supposed to do next. 
option one- build an adu. I remodel houses so I know a thing or two about building. I don’t know everything so I was thinking about buying a large shed and converting it? But I don’t know if that’s helpful from an equity side, or if I were to sell the house. If I need to do specific things for me to legally consider it an adu, and have that be priced into my property. A small problem with that though is I don’t have a whole lot of money to drop on an adu. I love the idea of getting some income from my property to help finance the remodel of my main house. But money is an issue. 
option two-

I was thinking I could remodel my main house over the next two-three years. And then get an appraisal. Cash out refinance, and use that money to purchase the adu. Or to build one. Or what ever. But with this way. The house would be completely remodeled. We would be living in it. While we start out second journey. And we still wouldn’t have any rental income or airbnb money coming in. Idk. I’m in a bind. Any advice is much appreciated.