My partner and I just picked up our first house in Indiana, paid cash, and are currently reaching out to contractors now to get our first BRRRR under way. Really exciting, but also a little nerve wrecking that we may not be able to raise the value enough to cash out refi.

Details - Property purchased for 28,000, would currently rent for 450 a month however we would like to rehab it to begin collecting closer to 650. Thinking new floors, paint, we are adding a wall and a door to add a bedroom (currently listed as a 2 bed but one only has a curtain separating it from the main living space). Most of the house is stylistically outdated, but incredibly well maintained. Comps in the area valued anywhere from 30-58K. Having difficulty finding a contractor that is available before June/July. 

My questions are these:
Where have you found the biggest bang for your buck when it comes to adding value?
Anyone have experience with lenders getting a cash out refi for a home that is valued <50K (Worst case scenario)

Excited to actually be able to call myself an investor! Looking forward to growing with this incredible community!