Build new rurally or renovate DT exsisting basement?

[Chantal Routhier]

Hi there, my partner and I are looking for advice

We are refinancing one of my rentals in my name. The market has gone crazy we’re we are at. Like an exact comparable for my house just went for $150,000 over asking and this happening regularly on the street.

So I purchased the house for around $222,000 in 2012 and comparables are selling for $500,000.

I’ve making a few hundred in cash flow upstairs as is.

The unit has an unfinished basement that id like to make into a rental unit. However it’s quiet the job. Currently dirt basement, no access, new deck has to be put in, new doors and windows cut into foundation. I’m having trouble even getting a quote for the work.

Though hopefully once completed I can refinance again.

We also have 3 acres private water view land 2.5 hours away for the city. It’s a dream lot. Easy access, flat, trees but not too many. It’s just very far from the main city but you are 20 mins from groceries. There is a buy boom rurally aswell.

My partners idea is to build new (or container home) there and then sell? We aren’t sure if we can find a quality tenant there locally.

I’m leaning to develop the basement despite the troubles. Husband wants to build new and cash out ?

Just curious what any professional investors would do first ?