Remodeling basement as an apartment

[Mark Reed]

My mom has an old house. It is one level with a basement. We're thinking about converting the basement into a rented space for tenants. The basement is about , there is a full bathroom (with the home's water heater in it), one large "bedroom" (small windows, but no egress window), one small "bedroom" (small windows, but

no egress window), a large 26x26 room with a fireplace, a large laundry room, a storage room, and the HVAC for the house. The basement also has its own walkout entrance on a concrete patio at the back of the house underneath the deck. The walkway from the front of the house around to the basement entrance is paved. The driveway is wide and long enough for several cars. I think, if fixed up, the basement could be a nice space for tenants. I would put a full kitchen in the large room.

Known numbers:

• Mortgage: $1150/month
• Rental range for basement: $1000-1300/month
  

Questions:

1. How do i know if it is worth it? What numbers do I run?

2. Is it worth it to put the egress windows in the bedrooms?

3. The electrical would have to be re-done, with an extra box added to accommodate the new appliances and everything. Would it be worth it to separate the basement electrical from the upstairs electrical? Additional meter?