House-hacking? Is this a good plan?

[Stephanie Sherman]

Thanks in advance for the help and patience as I navigate this new world.

I own a home in Portland OR, that I've lived in for 10 years. I owe 190 on it and it's worth around 335. Thanks to Portlamd's generous laws around ADUs, we could add a unit to our property to generate rental income. I've gotten a couple quotes from contractors and it seems like it would come out right around 60k, which we'd finance with a cash-out refi. What do you think? Would this be a good use of that money? When we move out we could rent both units (this is legal here too). It seems like a good way to house-hack without moving out. 

My biggest concern is that the cash out is all we have, and my plan is to use it to start investing whether it's in this or buying another property, so I want to make sure this is the wisest use of the money. Ultimately I'd like to buy and hold but I think in this market I may start with a flip.

Thoughts?