I'm actively trying to find properties where I could turn them from a 2 bedroom to a 3 bedroom. I found a potential property and I think that's where the "extra" square footage is coming into play (the house has 2 bedrooms and 1,100 SF).
I'm assuming adding a bedroom here may be more complicated because of matching the siding on the house - probably not worth the cost but I'm not sure.
Anyone have experience with something like this?
Yo're right it probably isn't worth the cost especially if you want to do it right or with permits. A screened in porch or covered patio probably is a worse place to start than if you were starting from scratch with a 2 bedroom with no patios
Courtney, working as a licensed GC I have done this many , many times but if you take it from me it is easier and more aesthetically pleasing and useful to simpley have plans drawn up , approved for building permits, and build a new third bedroom. However you are looking at about $20,000.00 in total cost so you will have to determine if it would prove worth it to you. I mean a covered porch is a feature in and of itself and is part of what would make a house attractive to a buyer and in most cases is part of your curve appeal.
I mean by adding one bedroom to a previously existing 2 bedroom and adding one bath I have successfuly turned a $150,000.00 home into a $300K plus home several times so in my case it did prove to be profitable but timing is everything and so is location. I mean not only was I a licensed GC but I am also an architectural designer and have always drawn up my own plans. However, if you are talking California almost anywhere in California this should prove to be a profitable strategy but it also depends, not in the middle of the desert for example or in depressed areas, war zones would also be obviously out as well. I mean as long as you use your noggen and things make economic sense you should be ok with thie strategy. I have used it myself for years and years throughout California. California yes but maybe in places like Michigan No. The 3 bedroom 2 bath conversion works but that porch thing maybe not.
On the surface it may look like all you have to do is put up walls because there is probably already a roof but what you are thinking can require work not only to tear down the existing but rebuilding all the way from the foundation and including at least one wall typically from the living room, not a good idea. I think you are on a right path but you need to rethink things and get some experience under your belt.
I mean if you happen to have an extra $20,000.00 to play around with it might be worth gaining the experience if it can provide you with a new strategy for forced appreciation or increasing the expected rental income.
Follow through with your thinking of forced appreciation and increasing potential income just not the porch idea so much.
Thanks for your thoughts @Gilbert Dominguez . This certainly seems like more trouble than it's worth. Even though I live in SoCal, I'm investing in Michigan (Westland area). $20k in reno to add another room is a pretty bad ROI - I'd rather take on a full rehab with a higher ROI, likely.
@Courtney M. Yes, I agree with you about the cost to add a 3rd bedroom not being worth it to you if you are talking Michigan Real estate. I myself am also a Michigan investor but there I am mostly buying Multi-Family properties.
You might consider buying a 3 bedroom 2 bath that needs rehab work that sells for about $25k and another $30K in rehab work for an all in cost of $55K with a possible and likely rent of $1,200.00 per month After repairs. Though not a multifamily I have also purchased these type of properties in Michigan as buy and hold properties. Although I must admit that I have several years experience in being a licensed GC, and am also an architectural designer who always creates his own drawings and presents them for construction permit approval at a cost to me of about $150.00 whereas it might cost you a few thousand dollars on top of contractor costs. For small projects I also do my own work personally with no contractors other than the very minimum the law requires. I might hire a sub do so some minor concrete work and a roofing contractor as well but all of the rest of the work I do myself.