Financing Rental Space Reno?!

[Russ Copeland]

Hello. My wife and I are about to close on a house and we have been probing the idea of renovating the basement to a single bedroom or studio apartment. We are trying to think of some way to come up with some additional financing if the need arises. We have obviously already discussed the traditional options (i.e. bank loans, FHA/HUD, our own savings), but we are currently brain storming some non-traditional and creative ways to finance the project.

I have budgeted for a $40,000 renovation that includes unforeseen circumstances.  We figure we can rent the apartment between $300 - $400 per month on the low side.  We'd like to use most of our own finances/savings, but we want to have alternative/backups already planned just incase.

Anybody have any ideas, please share.