Finishing a basement into a bedroom..Impact on the appraisal value for a 4-unit prop?

[Paul Lee]

I own a 4-unit multifamily property in Colorado Springs, CO. These units are townhome-style units, and two of the units have unfinished basements with the bones to convert them into conforming bedrooms. The unfinished basements each already have (i) an egress window and stairs leading to the main floor (two points of exit), (ii) a full walk-in closet, and (iii) a full bathroom.

My questions are:

1. 1.) Does adding a bedroom in the basement and getting a much higher rent amount affect the appraisal value? The rent would go from $900/month (2 br / 2 ba) to $1,800 (3 br / 2 ba). I would think since the property is a residential property, the appraisal would be based off the comparable sales approach versus income approach.
2. 2.) Do appraisers care if permits are pulled to finish basement bedrooms? Does DIYing a basement finish affect the value in any way? My father-in-law is a general contractor and we do a lot of DIY stuff. We would obviously leave electrical work to a licensed contractor. The DIY things we would do are:
   1. Putting insulation
   2. Putting up lumber to hold the drywall
   3. Drywall
   4. Painting
   5. Flooring

Thank you so much in advance.