Construction Decision For Rental Property
Good Morning BP!
We are in the process of renovating a three unit multi family building in Chicago. The second floor has 3 bedrooms and should rent for $1,200. The first floor has 2 bedrooms and should rent for $1,000 - $1,100. The first and second floors are long units with good sized living rooms, dining rooms and kitchens. The garden unit is in the process of being built out and is shorter. I'm trying to decide if we should make it a 1 bedroom with a dining room or open kitchen. Or making it a 2 bedroom with with a small kitchen and no dining area. Other one bedrooms in the area have asking rents of $750. I believe that I will still have good cash flow if renting the garden unit for $750, but I don't want to miss out on getting potentially higher rent. Do you think that the lack of dining area makes a big difference in renters decisions? How do you think the value of the garden unit will be affected? Any suggestions would be appreciated.