To add, or not to add? Portland Oregon flip.

To add, or not to add? Portland Oregon flip.

Salem, OR · Member since 2016 · 29 posts · 3 votes

I have a property in the Lents neighborhood that is just getting finished up with phase 1 of the rehab. After dealing with the city I learned I had to do the remodel in two phases, first on the original structure, and only after it finals out I can add to the house.  The first phase turned out great, but for me to pass the final it needs to be 100% up to code. Once I get it to that point I can just sell it as is and make my profit, or I can add a 3rd bedroom and a living room to the house and make it a 3 bed 2 bath(1494 sq ft) instead  of a 2 bed 2 bath (1028 sq ft). The takeaway is I won't have covered parking if I do the addition.  

The house as is has a big kitchen, indoor laundry room, 2 full bathrooms one smaller bedroom and a nice master with WIC.  It does NOT have a living room.  

What do you experts think? Should I get the addition done or just sell as is? My estimate is approximately 15k for the addition using subs for everything plus an additional 5-6k in holding costs.

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Developer · Portland, OR · Member since 2014 · 732 posts · 490 votes
8y
Gene Murashko at $32/sq ft I think you may want to plan for overages, but living rooms and third bedrooms both provide lots of value, more so than covered parking.
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  • Investor · Vancouver, WA · Member since 2016 · 5 posts · 0 votes
    8y

    Adding almost another 500 sq ft to a 1,000 sq ft home for $20k is totally worth it in my opinion. The additions will raise your property value by far more than just $20k. Plus a 3 bedroom is easier to sell than a 2 bedroom on the market. And I would take a living room and an extra bedroom over the covered parking any day. 

    But also consider the time and energy you'll have put into it. If you are pressed for time or funds for another project, it may be better to just sell as is and move on. 

    Have you considered renting it out instead? Maybe worth it in the Portland area.  

  • Salem, OR · Member since 2016 · 29 posts · 3 votes
    8y

    I would have loved to rent it out, but refinance isn't really an option right now.

  • Real Estate Agent · Portland, OR · Member since 2013 · 412 posts · 219 votes
    8y

    Gene, 

    If you convert, will you still have off-street parking in the form of a driveway, or do you lose that too? Even if you can just add a carport that will help-the new owner can throw a shed in the backyard and now there's storage. Sergey is correct that you'll have a lot easier time selling a 3/2 than you will a 2/2 with no living room. 

    Let us know what you decide!

    Pictures?

    Best of luck, Mathew

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    8y
    Is it normal in your area not to have a living room? just curious, i think that would hurt you.
  • Developer · Portland, OR · Member since 2014 · 732 posts · 490 votes
    8y
    Gene Murashko at $32/sq ft I think you may want to plan for overages, but living rooms and third bedrooms both provide lots of value, more so than covered parking.
  • Salem, OR · Member since 2016 · 29 posts · 3 votes
    8y

    It will still have off street parking, just not a garage, and it already has a shed. I'll try to get some pictures up today.

  • Salem, OR · Member since 2016 · 29 posts · 3 votes
    8y

    https://www.dropbox.com/s/zmkksk7lmyd7qlh/4704%20S...

    These are the plans for the addition, I'm on my phone and am having a hard time posting pictures. 

  • Salem, OR · Member since 2016 · 29 posts · 3 votes
    8y
    @Colleen F. it is not normal, but the original plan was to have the addition so I wasn't worried about it when planning the project.
  • Salem, OR · Member since 2016 · 29 posts · 3 votes
    8y

    Here are some pictures of the house as is, to sell it "as-is" I would remove the t1-11 siding and have that be a carport (as it was originally permitted),  

  • Salem, OR · Member since 2016 · 29 posts · 3 votes
    8y
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