Should I keep this house?

[Corey Spruill]

I have a duplex with a full illegal basement apartment. The house is currently under a trial modification because I almost went into foreclosure. The only modification I was approved for was I think a hamp modification so my mortgage is $1860 a month. Which is $700 more than my original mortgage payment. I planned on renting the 2 floors (I live in first floor) for $900 each and putting a stairway connecting the basement to the first floor apartment to make it a 4 bed which would rent for about $1500 a month making my total rent income $2400 a month. Property is worth $140,000 Question: would you connect the 2 apartments or do the work make it a legal apartment? Also is this property even worth keeping?

[Shawn M.]

It's not worth keeping if you are only able to get $1800 total.  From a 2 family I like to see about $600 after all expenses. Converting the basement is a good idea but it will need to have egress windows from the bedrooms. I'm not sure if you have room to put in these windows. Also, basement units are hard to make attractive because you always feel like you are in the basement. What do you owe on the property? Are you in a good neighborhood?