In a couple of weeks, I plan to put a rehab the market. It includes a permitted addition made in the 70s, turning a 3/2/2 into a 4/3/2 (two master suites and a hall bath).
I have a question: Currently, the master bedroom is accessed by walking through a connected bedroom, so I wouldn't feel comfortable marketing it as a 4-bedroom, just a 3-bedroom with a den, even though the walk-through room is a legal bedroom.
For a few thousand dollars, I could extend the hallway through the old master bedroom and put a doorway directly into the new master bedroom. Do you think this would be a worthwhile renovation? The affected bedroom would lose a chunk of square footage.
I don't see any 4-bedroom OR 3-bathroom comparables in or near this neighborhood -- they are universally 3/2/2s built in the 50s -- so I am unsure of the value this renovation would add. (I do have emails out to some Realtors who specialize in this location, and I'll make some calls tomorrow.)
The numbers on this project are tight already, so I am very wary of over-improving, but I do want to maximize my return. Along with making needed repairs, I have already added or plan on granite countertops, SS appliances, engineered wood, and new carpet, which will make me just as good or slightly better than the comps. I have recently been affected by a low FHA appraisal, so I don't want to make that mistake again.
A secondary sort-of question -- the inspector told me the electric panel could use an upgrade, BUT a master electrician told me it would be a very complicated project because there is no option to just put in a new panel; it would involve the meter and new wiring and $2,000 in labor. This leads me to believe that the other rehabs in the area are NOT re-doing the electric, which I'll confirm with a Realtor. Since the electric is safe and code-compliant due to grandfathering, I do not plan to touch it. Are my instincts correct?
Any input is appreciated. Thanks!
What is the market you are targeting at? Are you targeting first time home buyers (FHA loans) or 2nd home loan (parents) that want their students too have a house to live in an house and rent out the room?
How much money would it cost to make it a 4 bedroom and how unusable is the 4th bedroom? As awful as this sounds I would probably put more effort into the 4th bedroom than the panel as long as it sells. The reasoning, in my experience the layout and functionality will sell someone. Unfortunately the panel box and other "hidden costs" do not. They might ding you at the inspection but that is where I would evaluate the issue.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.