Should I eliminate a 3rd bedroom?

5 Replies


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.

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