Finish Basement or leave? Please advise

[Greg P.]

Hello all. I'm working on a house located in a blue collar mid-lower income neighborhood. ARV is around $135-160k max. The rehab with finishing the basement - adding 1 bedroom and 1 bathroom is $39k then it would go to a 4/2. To not finish basement it would be a 3/1, less sq ft but would cost $23k to do the rehab.

My question is, I've pulled some comps and noticed some of the houses with unfinished basements sold for $135k very quickly and the ones with finished basements around $145k-$150k. Would it be worth it to even finish the basement if the returns would be the same? I understand the house may sell faster and the chance of it selling at even the higher price at $155-165k could be possible, but I'm just not sure.

Please advise.

Thank you!