Is a Finished Basement worth it?

[Toan Hoang]

Bought SFR at auction for a buy and hold (brrrr). I need to rehab so I can pull out my money in a refi. Previous owners started framing the basement to finish. Question is for a rental should i finish the basement? Or does this upgrade not really matter. I am more interested from the sppraisal perspective. Does a finished basement count as added sq footage vs unfinshed.

[Mark Wilson]

Great thread! Piggybacking on this a bit more... I have a 2bdrm 1 bath bungalow (buy and hold) in a nice area of Denver. Thinking of finishing off the basement to include a master suite (1bdrm+full bath) and a decent size entertainment/living area. 

Two questions:

1. I hear mixed views on how appraisers view this: After completing the basement, will it just be appraised as a "2bdrm, 1bath, plus furnished basement" or will it be appraised as a 3 bdrm, 2bath house?

2. Is it worth trying to put in another small bedroom in the basement to make this a 4bdrm, 2bath house?