Possible BRRRR opportunity?

[Scott K.]

I'm looking at a property with two buildings.

The first house is very well kept and reflects its fair market value - no substantial room for improvement there. The second, however, is a very spacious two-floor standalone building. It's basically a garage/storage area, but could be converted into a legal home/livable space.

If we were to purchase the property through a conventional loan and convert the 2nd building, is it fair to assume we could then refi at a higher property value?