How far should the flip go?

[Marko Cvetkovic]

I bought a 3 bed 1.25 bath SFR in a nice area of town. The purchase price was 60k, the rehab will cost around 32k with just fixing up the outside and main floor interior. The problem we (wife and I) are kind of lost on what to do for the full basement with low ceilings. The past owners used wood paneling walls to make a few rooms. And it has a drop ceiling which needs to be removed because it make it to low.

Question 1 is this a 3 bed 2 bath goes for around 145k in area, would it be worth another 12 k to place a bathroom down stairs or simply fix the main floor and outside and sell it for 130K?

Question 2 is should we paint the wood paneling and remove the drop ceiling just to give it some appeal before selling?

Thanks