Converting Finished Basement into an Asset

[Justin Tahilramani]

Hello Fellow BP Members,

I am a recent transplant from NC to MD. I am wondering how many of you have turned your basements into income producing rentals?

I am an experienced investor and Real Estate agent (Licensed in MD and NC) that specializes in Short Term and Corporate Rentals - Please see this BP post about my first Short Term/Corporate rental development in NC:

https://www.biggerpockets.com/forums/61/topics/385...

I see a HUGE untapped market in the North Baltimore - South Harford County areas - Why arent more people taking advantage of the space that they already have in their basements/houses? Corporate travelers NEED safe housing in our area. They typically look for a room and private bathroom at a minimum. 

This is not the same as Short Term Rentals that are being heavily regulated - Corporate travelers typically rent for 60 - 90 days at a time and pay around $800 for a room and $1200+ for a private space (such as a furnished basement with bathroom). 

[Brandon Sturgill]

As a concept, basements are a horrible idea...they are forever problematic, even when built for occupancy. Most of the logistics with running a sanitary line is a problem if adding a bathroom. Basements are not naturally habitable space...for the purpose of appraisal anyway...and even when finished, the additional appraised value will only be .30-.40 cents on the dollar...considering the huge costs to properly renovate a basement for occupancy, the ROI is quite poor. There are lots of regulations around this concept, so just be sure you're up to code if you venture down that path of renting basement space...

@Justin Tahilramani