I'm looking to buy my first property and house hack and ideally remodel a portion of the house to add value and pull the money I used to remodel back out after refinancing. 

In terms of refinancing, would it be better to remodel the basement to turn into an additional living area or a garage? 

I plan to Airbnb the remodeled basement or garage but just want to make sure I'll get the money I put into the remodel and which space will provide a bigger return. 

Why not do both?  If you can create separate entrances to both spaces, then i would do that.  

@Laurie Horning Youll have to look at comps. If you are refinancing to pull money out youll have to look at it from an appraiser stand point too. If you turn the garage into square footage you will have to now look at houses with similar square footage but no garage which may not be favorable in your market. A garage can be quite a large $ adjustment on an appraisal depending on your area. It is more likely that you will find similar homes with a garage and finished basement but from just getting cash flow I understand and agree with what the gentleman above me said.

Thank you both for your responses! They've been very helpful!