Home Hack options- advice needed

[L. Brown]

Hello, BP nation! I am under contract on my first house hack (and first home purchase)- hurray! It's a duplex with a tenant in one of the units. My plan is to live in the second unit, have the basement finished so I could live down there, then move to the basement so I can rent out the second unit and completely cover the mortgage. I need to get my GC to walk through the space with me but from looking online, it may cost at least $35k to finish the basement. I'm thinking about how I would use the space once I move out.

Option 1: I could do a basic finishing (to make it live-able) and when I move out, make it a part of the first floor unit rental or Air B&B it
Option 2: Alternatively, I could “go big” with the basement and try to make it a three family (obviously this would require approval from the city).
Option 3: something else I haven't thought of

I'd appreciate your thoughts. Thanks everyone!

[Seth Williams]

@L. Brown Congrats on being Under agreement ! As far as your strategy goes, do your due diligence, or have your agent do their due diligence on the basement unit. There are a lot of cans / cants with basement units, for bedrooms, your own unit / space, or actual conversion to an in-law / 3 family. The BEST option is 100% legalize this as a 3 family, since that will add the most equity - without question. Every town / state is really different here so make sure you check into what you can / cant do before hand. I do like your plan though! The only other option that you didnt think of is buy a 3 / family or a 4 family first, since going down in units is easier than going up for your second property, but, that doesnt help you! Congrats again!