Need a ruling on a basement bedroom

[Mark Wilson]

I've looked through a few posts but not seeing exactly the answer I'm looking for... 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) as well as a decent size entertainment/living area. (FYI - I will also add an egress window in the bedroom)

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"?

2. Is it worth trying to squeeze in another small bedroom in the basement to make this a 4bdrm, 2bath house? Or better to leave more living area in the basement, rather than fill it up with a fourth bedroom?