Rehab into 4/2 or 3/2 - which is better??

[Rob Wilcox]

Hello BP, My partner and I closed on a SFH that is currently a 4 bedroom / 1.5 bathroom of about 1,200 sqft. The bedrooms are small, 3 of the 4 are 10 x 10. We purchased the home off market for about $150k and there are multiple homes on the same street that've sold within the last three months between $240-$260k (these have been 3 bed / 1.5 bath and 2 / 1's) so we feel good about a solid ARV around $250k. We are considering going from a 4 / 1.5 to a 3 / 2 with a master suite, as the back two bedrooms could very easily combine to create a very large room of about 25 x 12. Does anyone have experience of making a change like this kind of change and having it payoff? Or, would anyone advise just keep it as the 4 small bedrooms. We are definitely going to make it a 2 bathroom regardless of this decision. Thanks to all in advance for their insights!

[Aaron Smith]

I have opted to keep some of my rentals as 4/1 instead of 3/2, purely cause I can get about $200 more a month having that 4th bedroom.