<prompt> Human: Sorry about the long title. This is down under, rather than in America, but its largely similar in terms of the basic figures:They own their home outright, they want to invest 40,000 to turn part of the house into a separate entrance rental apartment, which would return around 200 a week, on average 48 weeks of the year, based on similar local rates. They are both 67, and reasonably healthy and will hopefully live well into their late 80searly 90s. However, they also live on a large yard, and could instead subdivide off it and build a new house, and sell that, and not have to deal with being landlords or losing as much privacy. It would cost around 30,000 to subdivide the yard, then a further 150,000 to build a small, 3 bedroom house with help from those who love them. The home would sell for around 700,000 based on recent sales of the same size and location. So, basically:Rental 200 per week after spending 40,000. Build 700,000 lump sum after spending 180,000, no tax on gain. It seems like a no brainer to me, but Im really battling to try and break down the maths in a way that makes good sense, am I wrongon the right trackdo you guys have another recommendation? P.s. due to the layout of the yard, they cant do both.  <response>: Which area is this OP? I have some experience in real estate development. All things constant, build and sell is a better option but it could change based on area they live in. They can make the lump some now and invest that money to bring in more than 200month without the hassle of being a landlord. At their age they really shouldnt be dealing with fixing things and chase after tenants to collect rent if you get a bad tenant. I would say build, sell, invest the profit and enjoy their retirement. 