Make house hack a multifamily or just a basement apartment

[Kelly Jennings]

I have purchased a house with a semi done basement apartment. Around 700 sqft.  I estimate it will take around $50-60K to make it a 700sqft separate driveway and entrance apartment.  Should I make it have separate electric and water and reclassify it as a multifamily?  Or, just leave it as a investment signal family?  The house is in Little Rock, AR

[William Sing]

I think this depends on what you are wanting to do. If you are trying to maximize cash flow on that specific property it would probably help, but you could probably put that money towards another property. Separating it out might be easier but watch out for SDC fees, especially for the waterline. I'd pencil out each option and see which one would be better financially, time-wise, and effort-wise. 

[Kelly Jennings]

Thanks William.  That is what I've been trying to do, find out the total costs and benefits of each.  However, sometimes you don't know what you don't know. :)

[William Sing]

That is true! Check out DIY renovision a youtube channel. They have some great stuff about doing basements and might give you a better idea :)

[Caleb Brown]

I would probably leave it how it is. Use that money for another deal or the next house hack. Maybe ask an agent for comps to also help see value wise what's better