Is it a good idea to build a home addition to build equity?

[Bob Ross]

I want to put an addition on my home - I want more living space for my family and to change the look of my home.

I am also looking to become a real estate investor.

Is it an ok strategy to build the home addition, which will in turn increase my home equity (by more than what I can build it for) which I can then access to fund other real estate deals? Or is it foolish to build the addition, and I should use the funds I have first to invest in real estate.

Thank you

[Bob Ross]

What I’m saying is, this shouldn’t be considered “throwing money away,” it COULD be used as a way to increase equity which would leave me with more money (via equity) than I started with to then reinvest in real estate.