Hello, I would like to begin by saying this is my first post in a BP forum! I am very excited to learn about the community and engage in discussion with other investors.
My question is, should I or should I not convert a garage into a master bedroom?
I just bought my first investment property about a month ago. The house is a two bed and one bath currently. The bedrooms are fairly small, roughly 14x12 and the bath is also fairly small but is a full bath. The garage sits at the same level as the house and is the size of a two car garage but only has one garage door and the other half was previously used as a shop. It would be fairly easy and cheap to convert it to a master bed with a half bath and large closet. What are your thoughts?
Is it a rental or flip? Would it increase your rent or your ARV of flip if so by how much? Then compare cost versus return.
Generally speaking, the answer would be add the bedroom, but without more info I couldn't really say.
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Definitely add the bedroom will increase value exponentially!
I usually will not even consider buying two bed room house unless it is at a significant discount.
I just came back inside to sit down on BP for a few minutes after running some new ductwork on my garage conversion. :). I have the same situation as you exactly. Except I am adding a full bath in the master. People definitely like full master baths. We figured that our house would sell for around 70k without addition and around 130 with addition. It's going to cost us around 17k. We talked to realtors as well and they said 2/1s are hard to sell because of the small buyers pool. The house would not even show up on most peoples searches because most start with 3/2 on zillow or trulia.
Our plan is not to sell it right away though. We are going to get a HELOC since we don't have any mortgage on the property and buy another flip while we live here for a while. We have a baby coming in April so we are just going to plant it for a year or so.
Thank you all for your replies! Joseph, I never would have thought to look at what is most commonly searched on internet sites. All of your input has been helpful. I believe I am going to leave the garage for a while though and rent it out, then when I eventually attempt to sell I think I will add the master bedroom. Does that sound like a good plan?
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