I'm looking into converting the seldom used formal living room into a master suite with private full bath. I plan to rent it out for cash flow. But does such a conversion add or decrease value/appeal for later sale?
This room is adjacent to the kitchen, separated by the front entry breezeway. The kitchen has been opened up and the rest of the house is renovated. So putting up a wall along that breezeway will close up the open feeling on that side obviously but the wall on the opposite side has been opened. I cut a 6 feet wide opening that leads into the kitchen.
What say you folks?
If you add a bath it may trigger to re-assess your property tax, and the increased amount may not be justified from your rent (especially if you own this property for a long time). I think it's a good idea to talk to the city and find out this issue first.
Regarding the re-sell value, a formal living room is not as popular as before, so it depends on your layout after conversion. Just my two cents.
Hi, Shao. Thanks for the reply. Yes, my PT will go up but I'm not sure how much since I'm not adding sf, just converting. I have owned the property 18 years. Do you mean they may reassess the whole property?
Good to know about the formal room not being so popular. Do new homes even have the living room anymore?
I heard many different stories about re-assessing after remodeling/conversions. A few said they got reassessed the whole property and some said they just re-assessed the portion that being remodeled or converted. Personally my rentals didn't get any reassessment after remodeling, but I didn't add a new feature like a new bath, but still I think it's better to do more digging about this issue especially you own it for so long.
Nowadays is all about open concept and a big multi-function family room with an open kitchen. Very few new built have a formal living room but I doubt it's because we just don't have a luxury to have it in the bay area :)
First of all. Without getting proper permits for plumbing, electrical, and weakening the loading structure you can get home redtagged resulting in buyer have to deal with the violation and have to pay cash for it. Contact City planning with drawings see what they say.
Oh yes. Permits of course. But I was only asking if it makes financial sense to do for ROI
I would recommend also going to the County Assessors office or calling and asking if they will reassess your property, or any conversation, as you will be adding an additional bedroom/bath.
Once you take a permit through the city, then the Assessors' office is notified, so why not just ask them directly, that way you know what to expect.
Without looking at a plan set/drawing of what you wan to do, it's hard to provide you with feedback. I would recommend designing the conversation that can be reversible if needed. Because you might not be able to sale it to a wider audience, or you might attract an investor that sees the potential of double income.
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