You can finish it and consider it sq footage, but may not be able to adverise as bedrooms.

I’d even consider finishing the basement, just well enough for me to live down there, so I could rent out ALL the units.I’d save all my cash and look to refi the property in 1-2 years out of the FHA mortgage, so I could use it again if necessary.

Hello Haneef, First off, congratulations on finishing school!

We finished the rehab and our agent, @Elyse Corcoran  was able to find a buyer prior to list. 

Timelines, budgets, quality of finishes, they all need to go well for your exit and if your in bed with a GC that only cares about himself then all those things will not go right for you, but he'll still get his money.People really underestimate the following:1) The cash they need to close and carry the project2) How hard it is to have a GC stick to what they promise3) How long it may take to exit through a sale

One year after I used that property to pull a HELOC and this year used that money to purchase an off market 4 family property in Clinton for well under market value, which I just recently finished all of the repairs and upgrades on.

What type of finishes?

The issue I am running into is in the refinancing of it, now that the construction is finished. 

We have a rented hot water heater that burst and flooded the finished basement.

I meant to make a point that an ADU is an improvement to your property much like a finished basement or a pool.