BRRRR Method possible w/building add-on/ second property on lot

[Jared Moote]

I have been trying to learn as much as I can on the BRRRR method but having a hard time connecting it with building a second building on property for rent and how you would apply this if at all possible with the method. I feel it should be applicable but cant seem how to understand the cost vs return on building/ adding on vs renovating and how certain things like changing zoning could cause changes in terms on things like Owner Carry loans or other bank investment situations. Right now I am looking at an Owner Carry situation so I am worried the Owner may do something if I turn the property into something else and want to repay a Lender with equity gained from value of property built. Also having a hard time understanding how to value cost of build vs value of this future property so as to know what type of return on investment to lender I can offer without shooting myself in the foot or causing myself a hard situation unknowingly and not gaining as much equity as expected from building a second Building on the property.