Advice on turning a home into a rental or sell
So I'm in a pickle. I currently own a home that I purchased with another individual who I used to work with. The situation went sour and he left, leading me to cover the mortgage. Initially he offered to buy me out but needing a place to live I told him no. In return I did offer to buy him out for $10,000. 5 years go by and I attempted to buy him out and he denied the money until I was able to refinance and get his name off the mortgage. Due to credit and the boyfriend at the time not working but in school full time I could not feasibly refinance. Over the last year my health took a nose dive and I missed a few mortgage payments causing my credit to drop. The ex-boyfriend caused me to lose my job due to attempting to blackmail me. The VA has helped me get my health back on track and I receive a monthly stipend for benefits. But I'm now in a situation where I have to sell my home. I do have a friend who makes quite a bit of money and is debating on leaving his current career path to get into real estate. I'm not entirely sure if this is buying and flipping or if it is investing and turning it these into rental properties. He's offered to help me fix at my home and get it ready for market but also possibly save it and turned into a partial rental. My current mortgage rate is at 3.25% and the market right now has it sitting about 6.59%. The home is currently 778 square feet, it's a two bedroom and one bath. The attic space is vaulted and there's a full basement that is the same square footage of the home. The basement however is below living standards sitting about 6 ft in height. I do have three individuals who would want to rent out the space. 2 would want bedrooms and one would want basement. I still would need a place for myself and my little dog to live. So I guess my question is is it worthwhile to flip the space and rent out the two bedrooms and basement while converting the attic space into another living area or just flat out sell the home? What would be a good argument and counter argument as to why? And what would be the best argument to bring to my friend who would be investing, and what would be a fair deal for both of us? This is my first time posting so I don't know what all to include, but if you do have questions or need more info please ask and I'll try to provide them answers as quickly as possible.