Advice & Thoughts

[Cory Vom Baur]

I am open to any advice or thoughts on this. 

My home is located in Mixed Use area. Thus, I can build a 4 plex on my property. I plan/planned to convert my home into a 4 plex. Basically it will be my home with a 3 plex attached to it. So I will be adding 3 units with each unit being about 800 sqft.  My home will get updated siding that will match the 3 units in the back. My home would also add an extra bedroom in the construction process. I have already spent/invested $30,000ish for design cost, engineering cost, and some permitting fees. I am fine with never seeing this again and moving on. This has been a really long process and, as everyone is aware, interest rates and construction cost have skyrocketed. So, I am trying to figure out if I should continue on with this plan. I have been listening to a book and it recommended this forum. Below are the numbers that I am looking it. These are currently rough. Sorry if the below information is somewhat convoluted, but I want to get information out there so I can get some informed information back. 

I currently owe on home - $90,000

Home could sell for - $400,000

Current Mortgage - $1,500

Timeline of construction - 1 year

Owe on home after construction - $700,000 (high estimate, but want to be safe)

Mortgage per month after construction - $6000 (Again, this is a high estimate) 

I could cover the $6000/month without any renters - (It would be about 50% of my income)

Rent per unit per month - $1850/month 

Area has a very high desire for people to rent. 

I would live in one unit (my current home), however, this could rent out for $2,200+ as it is a 3 bedroom.

City has approved everything. The bank says there will be no issues with this.  So just needing to make the final decision. I have about 3.5 years before I have to take out the building permits.

Any thoughts or advice would be greatly appreciated.