Cash out or hold & rent? Advice please!

[Joey Wharton]

Purchased a 1898 Victorian house on a whim for 200k due to location and potential. Lived in it while rehabbing. I did a full gut rehab and foundation for 50k. It has an 800 sq ft workshop on a separate meter with 12ft ceilings that i can convert into an apartment for 15- 20k.

Resale with apt is 725k range but may take a few months to sell. Tax exempt sale now that I'm married.

Hold and rent strategy - my husband can get a VA loan at 2.25%. Home is currently owned by an LLC so it would be a sales transaction for around 450k (no apt).

200k cash would be used for:

1. Pay off our primary home mortgage 

2. Apartment build out in workshop

3. Add an apartment to our primary home

NUMBERS (conservative)

Mortgage payment $2000 (incle PITI)

Rent from main house (immediate) - $2200

Rear apartment rent - $1500 - 2 months out

New unit on primary - $1800 long term OR short term $3600

As you can see by the numbers its very tempting to hold. But with Covid and the direction this country is going I'm afraid of being stuck with non paying tenants and eviction bans. 

What am i missing or overlooking? 

Is there a better way to approach this?

If i sell on the open market I can potentially walk away with 400k, can i put the money to better use elsewhere?

Whatever scenario - I dont want a mortgage on my primary home.