I'll provide some additional facts based on your response, but don't want this thread to spiral into a back and forth dialogue.

In areas with rapid and sustained appreciation, you can use the equity gained through appreciation to purchase additional properties.

Balancing salary, distributions, and employer contributions can optimize tax efficiency while keeping you compliant.This post does not create a CPA-Client relationship.

By having additional parcels, investors can generate more equity and value compared to simply adding an ADU.

In a nice suburban neighborhood a large bathroom with a standalone tub can add a lot of value, but the addition of a second bathroom is also important.Do you have an option of making a slightly smaller master bathroom and having a half bath or smaller bathroom with shower stall in the other bedroom? 

Updated the kitchen, bathroom, and pulled permits to expand an additional bathroom/walk in closet.

Hello Dana, For that purchase price in Brooklyn, NY, you could be looking at considerable unknown expenses at this point.If the property is occupied, you'll have to factor in attorney fees and holding costs while you wait to gain access to the property.Furthermore, you could be facing additional costs related to title issues: open permits, violations, liens, judgements, etc.

Consulting a CPA or attorney can ensure you're structuring it efficiently for both taxes and asset protection.This post does not create a CPA-Client relationship.

Brenden - An additional $3k per month by paying $50k?

The big issue is building a single small residential unit is the most expensive residential development.Here is a list of why adding a single ADU in single family zoned areas in my CA market is typically a poor RE investment:1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.