Adding additional bedroom in 2nd floor a good idea?

5 Replies

Hello folks, I have heard from the podcasts here on BP that adding a room is an opportunity to increase the value of the property. I don't see this as a big expense if it were on the first floor but what if it were on the second floor? There is a high ceiling in the living room which would accommodate a 3rd bedroom and that's how it is recorded in county tax records. Question is will the extra expense really add value to the townhome in this case too?

Sorry, Let me reframe my question- will the extra expense of adding an additional room on second floor appreciate the property value like it would if it were on the first floor?

There are too many variables to give you an answer to that question. We need to know every detail about the house short of the specific address to give you an answer. Post all of the details (and I do mean everything short of the address) and you will get the answer you're looking for

Originally posted by @Imthiaz Ahmed:

Sorry, Let me reframe my question- will the extra expense of adding an additional room on second floor appreciate the property value like it would if it were on the first floor?

 I guess we were both typing at the same time. Are there other rooms on the second floor? Is there a shared bathroom on the second floor? If the answer to either of those is yes, then yes. 

When considering additions or added scope to a reno, I like to make sure I have a two for one return on additional investments. 

For example, right now I am adding an entire second story to a ranch home. To renovate as-is, I would have an ARV of $149,900. To add a second story with a master suite, master bath, nursery, and walk in closets, it adds $26,500 to my renovation costs and about 30 days to my timing... However my ARV jumps to $219,900. If I had just done a dormer, it would've lessened the appeal and not cost much less than building a full 8' second story.

You've really got to pull good comps and understand exactly what you're doing... and then decide if it's worth it. Much of the time it is not. 

Originally posted by @Bryan Devitt:
Originally posted by @Imthiaz Ahmed:

Sorry, Let me reframe my question- will the extra expense of adding an additional room on second floor appreciate the property value like it would if it were on the first floor?

 I guess we were both typing at the same time. Are there other rooms on the second floor? Is there a shared bathroom on the second floor? If the answer to either of those is yes, then yes. 


 

Yes, there is a shared bathroom on the second floor. This will be built adjoining the master bedroom- The portion where the high ceiling is has 3 walls that reach the ceiling that will be used as the internal walls of the third room. I can try to attach a picture here if I could to give a better understanding.