Option 1:30 Year FixedLoan Amount $202,500.00LTV 75%Discount Points %0.00Prepayment Penalty (3/2/1)Interest Rate % 8.225Origination Fee % 0.00Underwriting Fee $1,645.00Monthly Mortgage Payments $2,018.76Broker Fee % 1.25Cash From Borrower $78,081.01Option 2:5/6 ARMLoan Amount $202,500.00LTV 75%Discount Points %0.00Prepayment Penalty (3/2/1)Interest Rate % 8.025Origination Fee % 0.00Underwriting Fee $1,645.00Monthly Mortgage Payments $1,990.40Broker Fee % 1.25Cash From Borrower $78,052.65

(This is presuming your basement doesn't have all the other necessary things like a kitchen, bathroom, tub/shower, own entry, etc for a renter?)

Bathrooms and Kitchen remodeling will add the most value for an appraisal.

New floors, appliances, cabinets, bathrooms, etc. 

However, I could see that changing in the next 18-36 months, and as someone else mentioned, maybe you are able to get some sort of a discount today and in 3-4 years you look like a genius. 

BRRRR: can add a modular bedroom/bathroom/pool/hot tub to rehab, rent, refinance, and repeatIf I do this right, I think I can still use a 5% conventional loan, although I might be wrong about that? 

If it were me, I wouldn't sell at the discount.  

I should also mention that properties with an ocean view in my condominium have sold between $1.2m-1.3m but also have less square footage and less bedrooms and bathrooms.

All clients were able to negotiate sales prices below asking with an average discount of nearly 3%. 2/3 included  average seller concessions that averaged $15k. 

. - If you're doing kitchen cabinets, do you want the bathroom vanity to match or does it also need replacing?