opinion on adding a bathroom?

7 Replies

roughly how much value does it add to a house?

is it worth just popping in a bathroom when ever possible?

someone wants to convert a walk in attic into a bedroom but i do not think it is do able..

Updated over 3 years ago


You need to run the numbers.  This question is too broad to answer in generalities.

are you going from 1 to 2, 1.5 to 2.5, or 2 to 3 baths?

Lets' assume you are talking about going from 2 baths to 3.  You need to ask yourself some questions...

How much more are 3 baths selling for vs. 2 baths in the specific neighborhood? If a 3 bath goes for 20K more,  that is your answer.

How much will it cost for the additional bath?   If it costs more than the added value,  I say don't do it.

As far as converting an attic to a bedroom.  That is also a case by case, question.   I don't know enough to answer, but would ask a GC to spec it out for you.

@Danny Woodson

This is a great exercise in running comps.  You'll get your answers for both bedrooms AND bathrooms.  Know where to put your money on flips and you'll be a much happier investor.

Also, check out various publications on value adds:

This old house talks about "project that pay"

Money magazine used to run a value-add issue each year.  I'm not sure they still do.

Originally posted by @Danny Woodson :

roughly how much value does it add to a house?

is it worth just popping in a bathroom when ever possible?

someone wants to convert a walk in attic into a bedroom but i do not think it is do able..

If it's short on a bathroom, I would consider it (example: 4 bedroom/1 bathroom OR 5 bedroom/1 bathroom).  Otherwise do not.  Do not add a bathroom when it is not clearly needed.  It is unlikely that the numbers will justify it.

If it has sufficient bathrooms and the design is such that you can add a bedroom at lower cost, it's worth evaluating.  That said, it is unlikely that the payback will be worth it. 

@Danny Woodson I come across this dilemma sometimes myself. I agree with everyone above ... you just have to run the numbers and look at the comps to see if it makes sense. 

I know for me and in my area a lot depends on the neighborhood. There is a project I'm working on right now in an area that sales at over $200 a sq ft ... and it only has a 1.5 bath so by adding a master bedroom and bath which will help sale my house faster and increase my profit margin. 

Now in most neighborhoods this isn't the case. Recently finished a 3 bed 1 bath in a mediocre neighborhood and it just didn't make any sense to add to it. These are just some examples. I hope that helps but really the only way to know is by running the comps. Good Luck friend!

We added a bathroom to a 4/2 house. Now 4/3. Moved a laundry room to a stackable laundry in a coat closet. Got permits and licensed contractors for the job. With new bathroom, widening one bathroom door, upgrading a toilet in master, granite on kitchen island (had ugly tile), hardwood flooring, upgrading lighting in dining and kitchen to can LED lights and paint, we spent about $19K in upgrades. Paid a premium for the house at $211K in a very nice neighborhood (bidding war). House is currently valued (after 1 year) at $240K. 

Going in, it wasn't a fix and flip property, but a home for my father-in-law with alzheimer's and a live in nurse. We decided to lease the property to a care home agency who has 3 residents in the home now covering the costs. So we paid cash for the house and the updates which earns $2,000 monthly in rent - $350 in expenses (taxes/insurance/home warranty) which net's us about 8.6% on our investment. Better than a CD or Fund. And we have an appreciating asset now.

So, was adding a 3rd bathroom a wise investment, not for a short term flip but for passive income yes as leasing the home to a care home organization commands higher rents than for single family (could only rent to single family for $1,600 monthly). 

Lesson learned: If purchasing a home to make money, know your options and ways out. In my case, I knew that home appreciation was at a good pace but also knew that I could rent to a care home organization if appreciation wasn't strong enough in the short term.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here