Renovate Basement or Purchase Another Property

[Mike McCord]

Good Evening,

I've followed BP for about a year now, but this is my first post!

This March, I purchased a 3/1 property in Atlanta. I live here with two friends. I am considered renovating the bare-bones, concrete-slab, water-intruding basement into a second unit. I would have a contractor fix the water issue, then my family/friends would renovate the space. Anyone in Atlanta know about the permitting/zoning process for converting the SFR to a duplex? Is that even necessary or could you just rent out the basement? I assume this space would rent for ~$600/mo.

I've saved up about $18K for this renovation.  But a part of me wants to use this money for a downpayment on a second property in my neighborhood.  I would use an investor-friendly lender who bases the loan on my future rental income.  I could probably afford a $60-70K property with rents in the $800-900 range.

Any tips or suggestions are appreciated,

Mike