While the cost can vary depending on the scope, zoning, and materials, I’ve seen similar projects run anywhere from $50,000 to $150,000, depending on factors like plumbing, electrical upgrades, and structural work.If you’d like, I can connect you with a few contractors or architects in Chicago who specialize in basement conversions.

Whether these factors outweigh the challenges is a personal decision. 

Insurance is now a big factor in the expenses of investment properties, even here in Reno, NV there are areas that have had large increases for single and multifamily properties.

Be sure to factor in repair costs to keep things profitable.

Some here will tell you all tenants hate their landlord so factor that into your actions.

There was positive population growth, medium home price growth, low unemployment, good rent to home ratios, and low crime, all of which are factors when I start looking into an area to invest in.  

Then, I typically see them take about a half to a third of that number for the adjustment factor.

As you allocate your budget, I'd suggest factoring in a decent portion for interior design/furnishings and amenities.

Taxes, costs, eviction complexity, etc are going to be a much bigger factor in your success than anything else.

The reality is you need to move off a few factors---fast solutions have slow problems, due diligence, have a healthy safety blanket reserve wise.