Hey all, I’m trying to decide where’s the best place to invest ~$100-120k next year outside of the stock market. I’m evaluating three different scenarios and I’d love everyone’s help thinking of pros and cons and the like.

1. Build an Accessory Dwelling Unit (ADU) on my property to rent out. I can build up to a 650sqft 1bed/1ba over a garage according to my local ordinances. It would be a brand new garage and apartment and local comparable rents would be around $1500/mo. Total Cost: $150-200k after building

2. Use as down payment to purchase a multi-family home in my area. Suitable two or three unit homes start around $400-500k in my area and total rents can range from $2000-3600/month. Total Cost: $400-500k

3. Use as collateral to obtain a SBA loan to expand my side-hustle. I currently have a business idea which I do believe could be successful but requires ~$750k-1mil to scale to a size where it can suitably be profitable and compete in the market. I would have to quit my current job to focus solely on this venture. Total Cost: $1mil ($100-120k of my own money)

A little about me if it matters… I have a good job paying $140k bonus that I like well enough. Own my home with mortgage of ~$250,000 at 2.6%. I max out my 401k every year and have ~$150k in them currently. Just trying to figure out how to do things a little differently than I do currently.

How do you go about evaluating potential options or opportunities? Anything I’m not thinking of when it comes to this? Thanks for any advice you can offer!