Overpaid for a rental, Now how to raise rent?!

[Eric Hart]

So I think I overpaid for a rental, which was a mistake. The bigger mistake was that the price triggered a much higher tax bill that is killing me.  But let's focus on what I can change. I'd like to increase rent and I think that I can. But first I wanted help from the community. 

The house is 5 bedroom 2 bathrooms close to the Ohio State University currently rented to college kids. The Setup is like this.

3rd: BR/BR

2nd: BR/BR/BR/Bath

1st: Bath

So the first floor bath is kind of awkward for the third floor tenants to walk down 2 flights of stairs to shower. 

I am relatively sure I can fit in a decent 3rd floor bathroom. I feel it would make the unit hugely more livable for the 5 individuals that are usually renting it from me. I have the space for it, and good access to run mechanicals.  Do you think this is something I should pursue? Current rent is $1700ish range. I am thinking this could get me another $100-200 a month?

IME a bathroom on the third floor with bedrooms is a huge selling point. Its very private for those that live on that floor. 

[Mark Welp]

Eric,
Just a question to see if I can help, why does the higher price trigger a tax bill? Is this an income tax bill? If you have a buy and hold rental and if you are doing your taxes right, you should have a net loss on your rental and owe no taxes.

Let me know if I can help. Thanks,