Should I rehab/upgrade this single family rental?

[Gideon Blustein]

My first rental property is a single family 2br/1bath, rents for 1300/month no issues. The exterior is a little dated and there is a huge unfinished (dry) basement. Current appraisal is 155k and I have debt of 128k. I’m wondering if I should finish the basement by adding 1-2 bedrooms and (maybe) a bathroom. Then re-appraise and refinance. Id like to find more equity to buy more hold properties. If my long term strategy is to hold, is this a dumb idea?