I am in contract for my first Buy and Hold property. Yay!!
The home is an up and down 2 family home. Each unit has 3 bedrooms 1 bath. There is limited closet space and each room is quite small, maybe 10x11 in size.
I plan to "house hack", live in 1 unit and rent the other. However I'm torn, should I combine 2 bedrooms to make a large master bathroom with a large closet in the rental unit? Or will I get the bigger bang for my buck by keeping 3 small bedrooms with little closet space?
I've read that eliminating a bedroom reduces the value of the home because you are removing living space, but I do not want to sell this home.
It is true that losing a bedroom lowers the selling price. You don't want to sell now but maybe in another 30 yrs? Did you buy retail? If you did then you already lose money because you paid for the 3rd bedroom and now you knock it down to 2 for your comfort. When it's time to sell you will need to add that bedroom back in which will cost you UNLESS you can make more money when it's time to sell by adding square footage on to both units to enlarge and give good closet space.
You also need to consider who your potential tenants are most likely to be in that area. Families with multiple kids will have different desires then young, kid-less couples.
@Suinda Machuca , maybe you might like to remove a bedroom from YOUR side only - leaving the other one as a 3 Bedder? (But if YOU need 3 Bedrooms, your Tenant is likely to also)! All the best...
Keep the 3rd bed.
Removing it will lower the value.
Thanks for the input everyone!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!