Looking for rehab advice on 1st brrr project

[Joshua Smith]

First time post 

Im currently under contract for a 2/1/1 728 sq ft home here in Lubbock Tx for $22000 cash with 40K budget for rehab. I own the home next door and it's identical but they turned garage into bedroom and added laundry room totaling 942 sqft. which I currently rent at $1000 a month. Could probably get up to 1200 with updates. This is a class C neighborhood and looking to BRRR this property under contract.

My question for all of you is I’m debating on added another bathroom and laundry room which would create master bedroom and allow the garage to stay or turn garage to another room and adding bathroom plus laundry which would turn it to a 3/2/0 at 995 sqft. Find another 5K for this route assuming probably closer to another 10K 
I can’t decide which creates more value on appraisal and rent? 

Bids on 2/2/1 830 sqft 

34K labor and material

Bids on 3/2/0 995 sqft 

45K labor and materials 

TIA