I just purchased a house in Roanoke, VA as my primary residence for the next four years. It is a 3 bed, 1.5 bath and I plan on renting it out after I move. It appears I could add a wall and add a bathroom to one of the larger bedrooms, creating a master suite on the second story. This would leave two other bedrooms with their own full bath.
Looking at Rentometer, and Zillow, it appears I can break even on the PITI payment by self managing by renting the place out for $1300. Would an extra bath in a master suite help squeeze an extra hundred bucks or two a month out of the place? For me it would be nice to have the extra bathroom for the next few years, but it isn't something I would do unless it led to increase in property or rental value.
For some insight on the deal, I slightly overpaid for the house in order to save other expenses in my daily life by living closer to my wife's work. The trade off might even allow us to become a one car family. I don't mind feeding the house a few hundred each month, since I can always refinance and plan on paying the house off within the next 10 years.
It really depends on your area. I would not rely to much on rentometer or zillow for precise numbers. Your best bet is to call other landlords in your area and see what other similar homes are renting for. Call a few property management firms. Ask if they see a difference. Many will answer your questions.
What is the standard for your area. If every home has 2.5 baths then it could be a good move regardless of rent increase. Do you have colleges , military, or a lot of single young folks? A separate bathroom setup could be helpful. Does that 2nd bath allow other uses for the home?
Do not discount vacancy time and long term maintenance cost. Will a 2.5 bath rent sooner, how much more in repairs will it cost you, etc etc. Are you in an owner occupant neighborhood or rental neighborhood. I know its a lot to look at, but 3k expenses add up quickly to reduce your bottom line.
You could probably get a slightly higher rent, but I doubt that adding another bath would change the dynamic from a break-even deal into a cash-flowing deal. In fact, depending on the price tag, it's likely you would end up subsidizing that bathroom for someone else to use long after you've moved on...
Thanks @Matt Clark. That's exactly the kind of local info I needed.
In our area having a second full bath especially for a 3 bed room will increase the rent. We are in a high cost area and single family houses with 3 bed 2 bath rent for 3500+.
I would see if there is a possibility to convert the powder room to a full bath. If this is possible this could be more cost effective than adding a completely new bathroom.
i agree with @Matt Clark
send me the address and i will ride by and tell you if you can get 1300 month
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