House hacking!

[Ceasar Rosas]

Hi Everyone, 

I'm currently living in one unit of a 2 family home with an unfinished bsmt. I own this home. A few details, home is worth about 440k-450k, monthly PITI is about 2700. My rental unit rents for 1550.

My question is should I take out a personal loan, 40k (84 months about 650 a month), to finish the basement as a potential studio that will rent at about 1000 a month? Or

Wait until I can pay cash with no debt to get it done?

I currently owe about 407k. If I finish the basement the home will be worth about 500k. 

Any advice, opinions, success stories are welcome. I'm just looking for the best way to maximize this investment. 

Thanks