I broke down last summer and finally got a portable unit after living in Oregon for 11 years without it, mostly because I was worried about my animals when I was at work. 

My understanding is that outside of the necessary requirements (closets and egress windows), a zoning variance would need to be granted by the city for the basement unit to be occupied legally.

There are currently 3 beds and 2.5 baths on the main level (one of the bedrooms has a full bath) and the upstairs is a large master suite with a large bath and a closet/dressing room that’s about 300sf.

My question is, does it pay off to dump a little bit of money on aesthetics such as laminate floors instead of carpet, new cabinets instead of the original working ones from 1969, SS appliances, closet doors?

Moisture resistant drywall will be used in all wet locationsAll ceramic tile will be installed on 1/2" cement board or a concrete PaintNew Switches, Receptacles, GFCIs and cover plates to codeHardwired smoke detectorsCarbon Monoxide DetectorsBathroom: Install Ceramic tile on walls for tub and floorInstall new pre-hung 6 panel hollow core doorNew Toilet with ring and supplyNew Vanity with faucet, drain and supply linesInstall new light fixtureInstall bath exhaust fanNew medicine cabinetInstall New TubBathroom Accessories (Toilet paper holder, towel bars, etc.)Bedrooms / Living room:Install new pre-hung doorInstall all trim ( Door Casing, Base, Shoe)Install Flooring material (Carpet, Hardwood,Laminate )Install New Light fixtureInstall Closet door (Type to be decided)Kitchen:    Install Ceramic floorInstall New kitchen cabinetsInstall Counter top (Granite/Corian/Laminate)Install New Undermount sink and faucet Install Ceramic backsplash with accentInstall Light fixturesInstall garbage disposal (if applicable)Install Dishwasher (If applicable)Install all trimInstall pre-hung pantry door (If applicable)All material types will be selected by you and installed by us.

You must be wiling to make all necessary repairs but often opt for the $28 closet door instead of the $100 closet door...

For instance, if you wanted to email someone a PDF link for a value write-up in a pinch.Also, if you are on a Mac, invest in a portable hard drive.  

My long term tenants are OK with portable heaters that I provided them.  

It’s considered a one bed one bath but has a basement that can easily be made into a bedroom with a big closet/storage space.

We turned a closet into a bathroom, a study into a bedroom, added a brand new kitchen, refined flooring, opened top the space by cutting out a wall and adding an eating space, handmade radiator covers, restored historic stained glass windows and an epic fireplace!