If you can add a legal ADU at $25k in the Austin area then you should add it.  

This can provide additional capital for future investments and get the next one.Or evaluating other loan options:Depending on your long-term plans, you could explore conventional loans or portfolio loans that might offer more favorable rates or terms with the new appraisal value factored in.Your decision depends on your broader strategy.

They charge $1250 for properties under $1mm for a 1 to 1 exchange and if you have another property to move your funds into, they charge $550/additional property.

Why ask: Get clarity on the full cost of the program, any additional fees, and what’s included.

Agreed - plus two additional thoughts:1) I always recommend having your CPA also review the drafted operating agreement for the tax issues. 

In addition I am giving him freedom to explore (to a certain extent) on my dime.

Our country needs four million additional homes.

If you have extra money that you haven't earmarked for additional RE I would do TSM index funds for a truly passive investment. 

I won't go into all the details, but there always ends up being a significant problem in the documents I get or don't get, in negotiations, etc, and the trigger never gets pulled.For a variety reasons in addition to the above, including my wife's encouragement, I've decided to take a serious look at going the real estate route instead.

I've owned the house for few years and have spent a lot of time trying to design an addition to add value to the property, but the current floor plan is really not conducive to realizing a return on that investment (tiny living room, low ceiling basement, poorly placed basement stairs, etc.).