Single family with attached garage - suite or?

[Elliott Russell]

Hi Everyone!

After being a lifetime renter (family of 6)--I bought my first home which needs quite a lot of work done to it. I would really like your insights on what would be a wise plan of action to help propel me to more homes. 

Property:

• Price $310,000
• The property needs fairly extensive renos
• It is located in Canada--our prices are high and even this home was bought fairly cheap. The house across the road is listed for $450k.
• There is a bylaw that says, if I have a suite, the owner of the home must live in the main part of the home.

What to do?:

1. We move in to the home and fix it up
2. Do we build a suite in the garage (it is two stories and would rent for $850) ? 
   1. NOTE: the bylaw won't let us rent out both the suite and main home when we move out--can only rent one.
3. Do we just fix up the home and flip it
4. Do we fix up the home and try to use the equity to buy another (renting out the home for

My Concern:

Financing has been problematic for us--buying and additional home will likely be very challenging. The complication is due to my employment (I am a contractor) :P