<prompt> Human: A couple years ago we bought a house in a historical neighborhood, our house was built in 1893. With that, many of the houses have carriage houses. Some of the carriage houses have been turned into garages, others garages with apartments on top. We are lucky that our original carriage house was torn down mid 20th century read: historic preservation office.New build carriage houses, that are specifically designed to accommodate a second floor apartment typically 2 bedrooms, rent anywhere from 1,500mo - 2,200mo in our immediate neighborhood. Ive spoken briefly to a local architect and without any specifics he ball parked building a 2 bedroom3 car garage carriage house that it would cost about 200k, and he also mentioned that was kind of light.So the question is, where can I find the money to build one? The investment seems like an obvious and fruitful one. We have a rental home around the corner with about 100k in equity We have about 40k in non specific, non retirement investments We have about 6,500 saved for this projectIve spoken to a few local banks, but they will only do construction loans with the idea when the building is done, we refi our primary home which we have an awesome rate on, and dont ever want to refi in with the carriage house. No one that I spoke to will take a second position on the property.Ideas?p.s. This isnt imminent. This is more of a fact finding mission to see if all of this is feasible, and to get a timeline.Assistant: Your proposal doesnt make sense. If I was an investor Id be saying no thanks.Youre asking for a way to rustle up 200K so that you can turn around and net 1500 a month but at the same time youre ALREADY renting and netting 1000 a month and have equity there? So even if a rich uncle gave you the 200K cash for 0 interest at 1500 a month it would take you 11 years just to break even before you even started to turn a profit. What if you decided to sell your primary property?That just doesnt make sense. If you want to rent more property mortgage another house and rent it out.One thing to bear in mind about carriage houses is you will be stuck with those renters on your property. What if theyre absolute dicks? No way would I be doing that.But if you have your heart set on it the only route I see is to liquidate everything and dump all your eggs into the carriage house. Then hope you dont get asshole renters. And never move.Human: My thought process has always been if we can pay for it with free and clear cash, then the build is like any other investment. It will increase the price of the main property close to the build cost, so the money isnt a sunk cost-- it will increase our equity. The 1500mo is about 9year on 200k still assuming a perfect world, not accounting for maintenance or tax increases, which isnt a bad return. In 10 years, the rent could potentially be even higher. I should of noted, the primary home where this is located is our forever home, we bought 2 years ago and plan on being there as long as humanly possible.I am also crossed with the idea of using the same said 200k on other properties. Our rental home was 20 65k down, and if I were able to find similar properties, 200k could yield 3 additional properties-- again all things being equal could yield 3kmo net off the bat.  <response>: I should of noted, the primary home where this is located is our forever home, we bought 2 years ago and plan on being there as long as humanly possible. In that case, the increased equity of your main house is useless. Equity is only good if you can sell it one day. 