Investing in my own home with an ADU.

[Jillian B.]

I have a SFH in Denver, CO. It is zoned for an ADU (Accessory Dwelling Unit). I can build an 864 sqft or 3 car garage and an ADU 648 sqft (approximately 75% of garage space) on top floor and generate income. Price tag $275K-$325K.

The catch? I took the equity out of my home to buy a duplex in Oklahoma City, which fell through, and I don't have enough to pay for the ADU. I have about 2/3 of the cost. So what now? I have been deliberating on this and I just don't know if I should:

a) Hold on to the cash/equity and make the payments until...

b) Buy a property in Oklahoma City, strong market but easier/less expensive to get into and try to generate enough return to actualize the ADU project.

c) Take out a loan to cover the cost of the ADU, roll the existing loan into it and build the damn ADU! (By the way I am quitting my job in the very near future and doing some freelance work.)

So you see I have lots of options, with a few caveats, but as a new investor I just feel overwhelmed. Any ideas out there?