More bedrooms or Garage?

[Lance Nelson]

I recently remodeled most of home in Portland, Oregon. It's a 3 bed 1 bath home with a 1 bed 1 bath converted garage. Long story short, they did a terrible job on the conversion and I have to tear it all out. My question is whether I should turn it back into a garage or if I'd be better served to drop 40-60k on remodeling the space. Cash flow would definitely be better with 2 units and I guess I could put some kind of storage shed in the backyard. I was told by somebody that storage is essential, but I figure I can achieve it with a shed in the yard. What's other investors thoughts?