Should i sacrifice a tiny bedroom to enlarge a cramped bathroom

[Jim Vanhorn]

I have a brrrr i am current in the rehab stage on and need some advice. The house is on paper a 3bd 1 ba row home. in an area where within the 2 neighboring streets all of the home layouts are exactly the same. nice solid brick construction row homes of same size and layouts. heres my problem... one of the bedrooms and the only bathroom extremely small. a I am seriously considering enlarging the bathroom into the small bedroom to have a normalish size bathroom and a hall closet in exchange for the tiny bedroom. The tiny bedroom is so small that the township considers these houses 2 bd units and therefore only allows 4 people to occupy them but when the home values are appraised they are appraised as 3bd homes. so this means the appraisal for the refinance part of the brrrr may come in too low if i move forward with this plan. of course on the other hand the tiny bedroom is wasted space that nobody will occupy. prospective tenants who need 3 bedrooms will not apply and my time showing this unit to them will be a waste. i do plan to hold this house for at least 10 years. so i am leaning toward doing this in an effort to make it easier to rent and keep tenants.