Unfinished Basement - Rent by the Room Question

[Michelle Hardy]

Hi Everyone,

Cashflow is my # 1 goal.  My income has decreased from my 9-5 and I desperately need to make up the difference through my real estate portfolio.  I currently have 2 properties in a low income neighborhood.  My credit is sub par right now so I haven't been able to secure funding for my duplex ( I paid cash and the Zillow estimate is almost 3 times what I paid for it but I haven't figured out a way to tap into the equity because of my low credit score.)  I thought that I should renovate the basement in my rent by the room house because that seems like a more realistic plan for my current situation.  However, since funds are tight, I wanted your thoughts on renting the basement unfinished and adding a bed.  The person would have a lock on the door and a giant space but would have to go up about 15 steps to get the kitchen and front door and an additional 10 steps to get to the bathroom.  What are your thoughts?  Should I try to rent the space as is or just wait until I can get the capital to renovate the basement?  Thank you in advance your perspectives.