Should I buy or build on my backyard

[Jose Herrera]

I refinanced my home and pulled some money out. I am not sure whether to use the money to buy another property or build in my backyard.

I have checked with the city and I can build two apartments. I feel like building on the back will give me more cash flow than buying, since LA is very expensive. I am not sure if the money I have is enough for the project since I will not get a contractor and I will be in charge of the project. I know some people that can help me.

Any input would be highly appreciated. If there is a need for clarification, please let me know. I have never done this before. I only have one property.  Also, I am not in construction I do tech for my job.