Convert basement/garage or not

[Wendy S.]

Hi BPers', I would like your feedback whether to convert my garage into 2 bedrooms with small living area, shower and convert my basement bedroom into 2? Bought my first house with a 3% conventional loan at appraised value (seller wasn't budging) less $2,000. Tried to renovate with a friend but after it fell through hired out (lots of lessons learned there too) spending about $35,000 to get a decent 4/3 split level which I felt comfortable living in.. House hacking 3 months after completion which essentially covers mortgage and utilities.. I am now thinking should I convert my double car garage which I am not using into 2 additional bedrooms ( app 11 x 11) complete with a standing shower stall and small living room (10 x 11) and also convert my basement bedroom (12 x 25) into 2 bedrooms at preliminary estimate of $32,000? I restarted working about 5 months now with a single private employer, same time I started renting my 2 rooms. So I am told I do not qualify for a mortgage and even tried to rent another house with possibility of rent to own as soon as I qualify, hopefully within a year but again I am told I do not qualify. So I decided to get creative with what I have especially as I plan to hold for the long haul. My problem is I do not earn 3/4 times rental income landlords are asking and I have no intention of becoming an employee again, except for the part-time work I now do that with my rent covers all my monthly expenses. I have a passion I am seeking business licencing for, but wanted to use what I have to create some passive income which I can have for future real estate pursuits. Sorry for the long post but I felt it was better to give background as well as where I am presently to help with any feedback I may receive. Thanks for reading and I look forward to your responses.