Duplex to Triplex Conversion

[Steven Austin]

Hi this is my 1st post on BP. I purchased my 1st income property in 2018. It is a duplex that I'm house hacking. I'm about $250 per month shy of having my mortgage completely covered by my renter.

My question is the basement is just under 6' high. It can't be legally used as a living space due to the obvious lack of headroom. Since I'm just storing junk down there, I'd like to get the height needed to be able to convert it into a triplex with its own entrance and all that would be required by law. That, of course, would require digging, plumbing ect.

I currently have at least $200 000 in equity. What would be the best method to finance this project? The goal is to basically BRRRR this property and look for the next investment.

PS I'd be able to get about $700 in rent for the new basement unit.