Make house hack a multifamily or just a basement apartment

[Kelly Jennings]

I have purchased a house with a semi done basement apartment. Around 700 sqft.  I estimate it will take around $50-60K to make it a 700sqft separate driveway and entrance apartment.  Should I make it have separate electric and water and reclassify it as a multifamily?  Or, just leave it as a investment signal family?  The house is in Little Rock, AR

[William Sing]

I think this depends on what you are wanting to do. If you are trying to maximize cash flow on that specific property it would probably help, but you could probably put that money towards another property. Separating it out might be easier but watch out for SDC fees, especially for the waterline. I'd pencil out each option and see which one would be better financially, time-wise, and effort-wise.