Should I add a fifth and sixth bedroom?

Question

Hi Everyone, I am excited that I will be closing on my first rental property in the middle of September. It is a single family bilevel with 4 bedrooms on the upper level and 2 decent sized bonus rooms in the lower(below grade) that have very large, to code escape windows already but no closets. I know adding a third and even a fourth bedroom can add good equity. Would adding a small closet to create a fifth and sixth bedroom below grade increase the value of this house enough to make it cost effective? Also, this will be a BRRRR if that matters.

Thanks in advance!

Account Closed · Answer

@Scott Edwards  is there a major need for a 6 bedroom rental in your area?  Just because you can doesn’t mean you should.  Only you know your area.  In my area a 6 bedroom is almost never a rental, unless it is a vacation home short term rental.

Only you can answer that.

Theresa Harris · Answer

@Scott Edwards  Is there a way to section off the basement and create a 2 bedroom suite?

Todd Rasmussen · Answer

@Scott Edwards

Congratulations on your first. If you only have to add closets, then I would say yes. Cost will be nearly negligible and any added value will be helpful. Don't pull all that added value without checking to make sure rents will increase with making bedrooms official to cover any added equity pull.