Is Walk Thru Bedroom a Deal Killer?

Question

Hey Guys, I found myself in a unique situation...

I came across a 3/2 at an attractive price the day it was listed on the MLS.

I have been out of town and I wasn’t able to see it, all I could do was see the pics on the listing. I knew the price was attractive and it needed some minor work, it could be a potential BRRRR deal.

I decided to throw out a cash offer (sight unseen) and they accepted.

Listed price - $65k

Offer - $59k

Rehab Estimate - $20-25k

ARV - $110-125k

I have a 7 day inspection contingency and must close by July 31st.

Here’s the problem...

Since I haven’t actually been inside, I asked my dad if he would visit to check it out before hiring an inspector.

It’s listed as a 3/2. The city assessed it as a 3/1.5 (2 full bathrooms, 1 is in basement).

But he said there was only 2 bedrooms. The Bungalow upstairs is just 1 big room, but they’re counting it as 2 bedrooms.

The only way to access it as 2 different bedrooms, would be to WALK THRU the first bed to get to the 2nd.

Do you guys think this is a deal killer?

I don’t think a Walk Thru bedroom would effect market rent, but as a BRRRR I need to be able to please the Appraiser.

Would the Appraiser consider this a 3 bedroom?

This house was built in 1927, it’s 1200sqft, and located in Michigan.

Brian R. · Answer

I have a duplex with walk thru bedrooms on both sides.  You walk into the first room, and then through the door in the wall separating the two rooms to the second room.  I have never had a problem renting it.  My realtor told me that the appraiser would count it as one bedroom, so I had to run my numbers as a one bedroom each side for my loan, but I have been advertising it as two bedrooms, with a disclaimer about the walk thru, when ever I have posted it for rent.  I have a couple living in one side, and a single mom and daughter in the other.

Pat L. · Answer

@Matthew John no we did not but the one we wanted in the same area is now under contract. Oh well.

Matthew John · Answer

@Pat L. Did you go through with the purchase?

Matthew John · Answer

@Brian R. I don’t think tenants care too much, the person I’m trying to please is the Appraiser. I decided to order an Appraisal for $275 and asked them to give me the value of a fully remodeled unit to see if it makes sense.

Matthew John · Answer

@Chris Lynn I wish there was an easy fix! This is in the top of a Bungalow. There is limited room. Consulting a contractor to see if it’s possible to add a small hallway and alter the staircase, if not I could make it one big room and possibly squeeze in a bedroom on the main floor.

Pat L. · Answer

Looked at a potential purchase from friends who are living in one similar now, waiting for their new build to be finished, they hate the setup & there is no way to change the flow per se.

Chris Lynn · Answer

I just purchased a SFH with a similar issue.  While I'm sure you could rent it as a walk through, I don't believe it's optimal.  I corrected the issue by rearranging the flow (walled off one door and added another to the room) and had zero issues renting it at the top of my estimate.  Deal killer?  Probably not, but I'd fix it on the front end if possible.

Is Walk Thru Bedroom a Deal Killer?

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