To build or not to build

[Michael Deacon]

Hello fellow BPers,

I have a rental property with a single detached home on a lot that is zoned for up to three units. Highest and best use would suggest building one or two additional units. I've run the numbers and it looks like I could use the equity from the existing improvements to finance this caper. This includes a good deal of my own labor on tasks that I'm experienced in like working with directly with designers, structural engineers and contractors and doing finish work. Still there is not much room for error in the budget. On completion I expect to cash flow on rents and have more equity than I would have if I sold it today. I'm looking for any advice from folks with experience in this kind of situation. Thanks!