Quick question on building an ADU

[Ryan Cleary]

I currently own a long distance rental property in Riviera Beach, FL, the current cash-flow is amazing. The property is currently a duplex. There is more then enough land to add the exact same structure already contained on the property plus parking. So this would change the duplex into a 4-unit. The property is zoned for up to 4 units and is surrounded by other 4 units.

Does this sound like a good idea to try and build an additional dwelling? Should I work on building a portfolio of more properties instead of spending money on construction? This is probably a stupid question but is it possible to use hard money for the construction and then refi after tenants are in?

(The existing structure is literally a concrete bunker. Single story Concrete bricks with a flat roof. It seems like it would be on the more affordable side)

[Kerry Baird]

Well, some thoughts to consider: Negatives: noise for your current tenants. Time it takes to finish build. 
Positives: You won’t have to buy the land, so you have build and permit costs. You might find Construction financing at a local bank, rather than hard money. You’ll learn how to develop. You’ll have income while you proceed...and have greater value at the finish.