Need input

2 Replies

Just purchased a 3 bedroom with a rather large basement. 3 bedroom would catch about 1100 a month, however if I added a 4th bedroom in the basement, I'll get @ 1300 a month in rent.

The basement takes on water, needs to be partially finished, (walls/floor/outlets/lights/ etc) plus an egress window needs to be installed.

Rough numbers when all is said and done will be 9-10k, with the waterproofing eating up most of that estimate. This is a place I plan on holding for a while, but want to hear others opinions on what they would do and why.

Hi Dave,

Based on your numbers & assuming no additional increase in monthly expenses:

$200 in additional income per month X 12 = $2,400

$2,400/ $10,000(Initial Investment) = Return of 24%

Payback period 4 years and 2 months.

Looks like a solid investment.

I personally would finish a basement for resale but not for a rental. I would be concerned about water and mold issues due to misuse.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here