Air BnB or rent basement as Additional Dwelling Unit

[Stephen Broadus]

I am purchasing a property to create cash flow by renting out the rooms. Typical BRRR style, nothing fancy. However, this property is interesting because it has a 300 sqft basement detached from the main housing unit. The house is built on a hill so the basement is only accessible from outside of the house and there is already a private entrance from the side. I concluded that this makes it appealing for use as an Air BnB or an ADU potentially. Currently, it is just an open space that I plan to heat, cool, floor, drywall, insolate, and insert piping to make it a 1 bed 1 bath studio. What I am estimating to be a $15,000-20,0000 project.

The house is in Phenix City, AL, near a military base and a few college campuses. What would you do to maximize profit with this space? What are the Pros and Cons to going with either Air BnB or renting it out separately?