To refurbish basement or not

[Joseph Lucido]

Fellow submarine officer and I luckily got stationed in Boston together at the same time. We bought a 2-family in Somerville equidistant from both Davis and Porter squares. We are both independently remodeling our separate units (I own lower, he owns upper). Before we condoize the property, we are deciding if we should completely redo the basement and turn it into its own separate 2 bed 1 bath apartment.  Estimates from contractors range from 150k-200k for everything. Scope is digging out basement, tuck point, permits, architect, engineer, chimney removal, re configuring HVAC, and everything else. We think we could rent the basement unit somewhere between 1800-2000 a month.

My questions are:

1. Do these numbers make sense?

2. Has anyone in the area seen this and know if it is a worthy investment

3. If so, any tips or advice (especially when it comes to permitting in Somerville) or any other contractors recommended for the job.

Appreciated all the help from BP!!!