New Investor and Question on a Potential Starting Point

[Daniel Jones]

I am new to real estate investing and am excited for the opportunity to learn from others on Bigger Pockets. So far the educational tools, podcasts, and videos have been extremely helpful in initiating my passion, knowledge and intrigue. I have found myself thinking every minute about deals and how to grow my wealth. It is funny how a new baby on the way gets you thinking more long term.

Anyways, my wife and I live in Boulder County, Colorado and made good decisions on our home purchase and have a good amount of equity in our current home. Looking back when we bought this home we were honestly thinking as investors back then. The reason why I loved the property was it was zoned R-2 multi family in an up and coming part of town and we believed that appreciation was going to move in our direction. It has and now we are looking at our options.

We do not have the funds to purchase a rental property in our area in the current market and are hesitant to purchase a place at distance as we feel we want to cut our teeth in a market we know and where we can be more hands on while we learn. Knowing that our house is zoned multi family I went to the city to find out what was possible. . .We are able to build a new structure onto our existing garage that can be as tall as our main home and 1/2 the square footage. 

My question is, has anyone ever started off their real estate investing with just an expansion of sorts on their already owned property? What were the draw backs or pitfalls? Positives? Lessons learned? 

Any help or words of advice for someone who is brand new and has a very cautious wife.

Thanks!