What to do with walk-out basement?

[Thomas C.]

Hey everyone!

I am considering purchasing a property in Pensacola, FL that is a 3 bedroom/2 bath with about 2,000 square feet.  It's not exactly what you'd traditionally think of with a split level home, but all 3 bedrooms and both baths are upstairs, and the lower level is a garage, laundry room, and large family room/walk-out basement type situation.

I am intending to use the home as an Airbnb.  It's about a 25 to 30 minute drive to the beach, but conveniently located close to the airport and other points of interest.  There is a home right around the corner that is of similar size, renting from anywhere between $250 and $400 a night, depending on the season. 

So, my question is... since I would already be doing renovations, would it be a better idea to simply keep the walk-out basement as one large room, or budget for enclosing a portion of the basement to create a fourth bedroom?  I don't know how easy it would be to add a bathroom down there, but my guess would be that it would be too cost-prohibitive.  Either way the home would sleep ten.  If I kept the basement as one large room, I'd most likely make it a game room/bunk room combo with two sets of bunk beds and a sectional with a TV, maybe a ping pong table or something like that.  If I added an extra bedroom, I'd probably put a queen size bed in the bedroom, and a pull out couch in the family room area. 

I am leaning towards adding a bedroom, since that would also increase the resale value quite a bit, but I am worried that not having a bathroom on the lower level would be a deal breaker for some guests.  My goal is to make the home as family friendly as possible since many of the properties downtown are much smaller, and the larger beach properties are expensive in the summertime.  Just trying to figure out the most beneficial avenue to take

Thank you guys so much, and I look forward to hearing your input!

[Billy-Dee Greenwood]

I like the idea of a gameroom/bunk beds if you decide the bedroom & bathroom combination is too costly. You can spend money on the initial renovation and upgrades you mentioned while focusing on managing the Airbnb efficiently to start.

Once you’ve made some money, you can revisit the bed/bath combo downstairs. If the location and current layout is solid, you may not need the additions. Having time to evaluate the situation could change your perspective down the road. Best of luck!