Secondary Dwelling in Primary Residence - to build or no?

[Mark Sherwood]

Hi everyone!

New member here, only made my introduction post a few days ago!

I’ve recently bought a wonderful semi-rural house and it doesn’t have too many options in terms of forced appreciation or cashflow as it’s a 2 bedroom, 2 bath.

That said, it is on 7 acres and I’m allowed to build a secondary dwelling and rent it out. I’m wondering with all of the experience in here, if folks think this would be a good idea or no? It would cost to build but I believe it would raise the value of the property and eventually bring in cash flow so I can house hack my own property.

Another option for forced appreciation is to build an extension and add a third bedroom, but not sure if that is worth it either.

Thoughts and opinions are welcome, thank you!