How to refurbish basement for buy and hold property

[Nick Van Sandt]

Joined BP about half a year ago, and with the help of knowledge from this great community my wife and I purchased our first home outside of Denver.  Our plan is to buy and hold, live in it a few years, do some rehab and the eventual goal being to turn it into a long term rental property.  The house has 4 rooms but only 3 qualify as bedrooms as one has a window too small to count as an egress.

My question is in regards to the basement.  We have some old shag carpeting that has a faint musty smell but isn't unbearable.  One big room that has an egress window, one small rec room, and a full bathroom.  We would like to refurbish this basement to the level of being able to air bnb this space of our house while we live upstairs.  Our dilemma is that we don't know what we should do with the flooring.  Would it be best to put down laminate, remove and just have concrete slab, etc. ?  

What would you do with this basement given our goals of having people air bnb this space and later turning the property into a rental?

Thanks and your advice is greatly appreciated.