Can I afford the refinanced mortgage payment?

[Marc Hardy]

I am considering a wholesale deal on a triplex. It is fully rented with gross rental income currently at 2600 per month. It's a 3bd 1 bath, and an additional 2- tbd/1ba units. The asking price is $253k. One option for value add is an ADU where the current garage and carport are located (900 sq. ft.), Another option is renovating the kitchens and bathrooms. Lastly is finishing the basement (would be an additional 1400 square feet).

I'm leaning toward doing the ADU or the basement. Based on the additional sq footage, the ARV after the ADU would be $487k. Based on the additional sq footage with the basement, the ARV would be around $550k. My concerns are that after refinancing with an ADU, the margin is a little too close for comfort (roughly 40k difference). My problem with the basement is, I'm not sure if the rent, even after being raised, will result in a cash-flowing property.

Knowing that the one-time showing is happening in 24 hours, and offers will be collected right after it, what would be your next steps? Which way would you go, or would you even do the deal at all? I am looking for any guidance. Thank you!