I just did a 60% LTV cash out refi on my 2 family home via an amazing loan program at 3.75% for 30 years! After upgrades in both units and the exterior, I'll have about 130k left to invest. I want to make the smartest decision with these funds and not sure of my next move. I had always planned to add a 2 or 3 bedroom ADU to my basement, making it a legal 3 family home. The cost to do this would probably be around 130k. The way I look at it, that's like buying a 2 or 3 bedroom unit in the city of Boston for 130k, which does not exist. If I do this, I can possibly refinance again with the same program and get another 200k out. That's assuming the property appraises for about 1.2 mil as a 3 family, the loan program still offers the special low rate, and I qualify. If it were a 3 family right now, the house would definitely appraise for between 1.2-1.3 mil. I'm just not sure about what it will be 12 months from now.

If I don't do the ADU, I'd like to invest in another multi unit building, at least 6 units. I would have to put at least 25% down which would likely take the whole 130k here in Mass. Any ideas of how I can really maximize and grow these funds I currently have? Should I do the ADU and try to refi again? Put that money down on another multi unit building...or something else?? Thanks!