Thinking about finishing the basement, how do these numbers look

[Marc Roberson]

Hello all, ty for reading. ill throw out all the numbers i know so far

PP of my house was 434k a few months ago. it is a new build, 3 bed 2 bath ranch 3 car garage and 1480 above grade finished with a basement the same size on .17. Had two other realtor's price it at about 460-465k right now. nearest comp (5 bed 3 bath, 2700-2800sf 3 car garage ranch) came in at 510k but had about a 200sqft front porch and .19 acres instead of .17 like mine. so since i have a 3 bed 2 bath, id finish the basement which DIY would cost no more than 15k if i finished 1000sqft of it to keep some for storage but to also add 2 bed and one bath. so if value now is at 465k and it would only get it to 490k, and i spent 15k to do it, that might mean a gain of 25k in valuie. worth it? long term plan is to keep the house, do a heloc to take out enough to buy a 4-6 MF income producing property in a different state where i grew up OR just outright sell the house in one or two years. thoughts? need more info? northern colorado market

[Emilio Ramirez]

For a 10k gain in value... I think it is an absolute waste of time and money... but I also think your numbers are wrong. That being said, if you have a year or two to do the work yourself go for it. I think finishing a basement is an easy value add (assuming all the other factors make sense, location, ARV, etc. ) However, if you bought the new build at the price of a similar property with a basement already finished... not sure the equity will be there unless the appreciation/inflation ride goes on... Finishing a basement of that size is a lot of work. Most basement guys I know are doing a job like that in 3-5 months depending on how far they take it and how many subs they use versus self performed work. If you don't own the tools already, that alone could run you about 2500 or more depending on how many of the finishes you are planning on doing yourself.