What to do with the garage to maximize ARV?

[Mike Malyy]

Hi BP community,

I would like to get your opinion on my situation. I am currently under contract to buy SFH (3/1, 1058sf), with a half done garage conversion (450sf). Previous owner already put in a full bath and weatherproofed it, but hasn't done anything else. Because I will be doing the rehab and garage is a clean slate, here are a few options I am considering:

1. Convert it to a master suite, which will make the house a 4/2 with 1500sf
2. Convert it to a studio
3. Convert it to a 1/1 

My goal at the moment is to maximize ARV for refi, but I am not sure how the appraiser will look at it. Once the refi is done, garage will most definitely become a 1/1 for additional income. My dilemma is whether I should just go for it right off the bat, which will save me some money, or make it a master suite first, and then convert it after the appraisal.

Thanks for your time.