Best way to spend 150k HELOC for passive cash flow?

[Keenan B.]

Hi folks,

I've currently got 150k equity at my primary residence. The lot is spacious and there is a great space in the front yard for an ADU that would be very removed from the part of the property we spend our time on.

That said, I’m brainstorming what to do with this 150k equity. My goal right now is to increase passive cash flow, and I’m thinking that putting an ADU in the front yard might be my best option. 

The property is in Bend, OR, and I would be able to build the ADU for ~100k (family contractor discount) and rent it out for ~1500/month.

I thought I would see if there is any input on any better cash flow options that I might consider as I decide what to do with this 150k equity. 

Any input would be appreciated!