Should I lose a bedroom so make bigger closets, etc.?

[Pamela Rickey]

I am in the process of buying my first house to flip. It has 2,000 sq. ft. and was built in 1921 in a neigborhood that has been gentrified. Mostly Yuppie couples. Most of the houses that have been remodeled sell fairly quickly for $100k-$125. I bought this one at auction for $36k (including fees) and am aiming to sell for about $95k.

Upstairs, the house has one medium sized bedroom and three more smallish bedrooms--all have very limited closet space. There is also 1 large bath.

One of the small bedrooms you can only get to by walking through another small bedroom. I am wondering if I would be better off tearing down a wall to make three bedrooms instead of four. That would enlarge two of the bedrooms. I could then build more closet space and, possibly, add a master bath. 

I did think of just making the fourth bedroom a bonus room, or a closet/dressing room for the master, but that doesn't seem like a good option because it would put the master in the smallest bedroom. 

Any advice? Would  four small bedrooms bring in more money than  three larger bedrooms with nice closets, even if you have to walk through another bedroom to get to the fourth? Would I lose money on what it would cost me to tear down a wall and build closets? And lastly, would it be worth it to build a master bath next to the existing bath? I already have some fixtures I can use.

[Bill Fennelly]

Walking through 1 bedroom to get to another is generally considered to be a privacy violation, so the middle entry bedroom may not be considered by and assessor or an appraiser, I personally will look at the layout and consider how a typical end user in that marketplace will utilize the space, while I hate to get rid of bedrooms and bathrooms, in this case it may be worth consideration given the privacy violation, smaller bedrooms to begin with, as well as lack of closet space...just my opinion, good luck.