You want to investigate any building restrictions the municipality may have related to zoning, setbacks, lot coverage etc. 

Just keep the walls wet and you shouldn't have coverage issues. 

And if you're doing this as a side job to supplement your full time job get ready for some 60-80 hour work weeks.

I recently bought a two family home and the basement is fully finished without a kitchen but ample space  and I have been recently toying with the idea of renting the basement atleast as a room sharing however being a older home it doesn't have the kind of electrical capacity to accomodate a decent electric stove which has very high amperage requirements (atleast 150 amps -200 amps) besides I am not considering gas stove as an option.As is I can envision fuse tripping beside I don't have any 220 line,also it gets very cold in winter in the basement so I will most likeli need a supplemental heater in the basement so elctric upgrade seems like a must if I decide to rent it out.However I was wondering would it be a better idea to have solar panels to supplement my additional electrical needs? 

I also carry $300k coverage myself.

You can supplement this with propane space heaters during the day which should be a little cheaper to operate. 

@Jason BocekIf you plan to file your own return - You should look into reading the following form instructionsSchedule E - supplemental income and lossesForm 4562 - Depreciation & AmortizationForm 8582 - Passive Activity Loss LimitationsHowever, you may be better off find a professional who can prepare your returns correctly and provide you tax advice.Your rehab expenses may need to be capitalized if it was paid before the property was livable.You should be entitled to other expenses outside of interest, taxes, insurance(remember paying down loan balance is not a deduction).You should interview a couple accountants here on BP.

There is nothing wrong with selling, but I like the strategy of doing a refi or a supplemental loan (if possible).

Will swap temporary property management coverage with like-minded investors in exchange for same.

Next will be, what must I spend to supplement that work and create 3/month?