For perspective, the house directly next to this house is estimated at over $900k fully updated with slightly higher square footage, but 1 less bedroom.

@Greg LovernAny appraiser you use regardless of the loan type is not going to give below grade square footage the same dollar value as above grade.

We also considered converting the garage into a 3rd bedroom to add value through live-able square footage but aren't sure how far we should go with it before we start looking into a cash out Refinance.

Also I'd like to add square footage to house by finishing attic as my space/bedroom so the 4th bedroom can be rented aswell.

Similar things apply to overall building square footage, building height, etc.

Similar condition, square footage, bed/bath count, etc. 

Hi all,I am looking at a potential rental acquisition where the home contains a garage conversion into a room and it is unpermitted.Note that seller has not included this room in the sq footage and i am not purchasing it with the assumption of conversion to permitted.If i were to buy and turn into a rental - is there any liability to renting it out with that unpermitted conversion?

I currently am franchising stores for a few years now and am seeing the leases we sign and square footage we pay for. 

Hi Michael,A reason why the square footage may not have been included is if was not "finished". unfinished areas or attics, or areas only accessible through unfinished areas will not typically be included in the square footage.

What's important is secondary security locks, AC/Heat for all living sq footage, all working outlets, damp rated bulbs in bathrooms, working appliances, fire extinguishers, we do 1 year worth of monthly air filters, which cost way less than ceiling fans, working fire alarms, etc.Best wishes, good luck.