Hey BP. I need some advice. I currently have a three family property under contract. All three units are comprised of 2 bedrooms and 1 bath, and each apartment has approximately 1100 square feet of living space.
I'm trying to figure out if it's feasible to convert the living room to a third bedroom(each apartment has a kitchen, living room, dining room, two bedrooms and one bath). I have already had a contractor quote the job to cost around 3k for demo, framing, sheetrock, per unit.
In my area, a three bedroom rents for about $200 more than a two bedroom, so this option would definitely be cost effective in recapturing the investment. However, would the lack of living space/living room drive away potential renters or do you think that a third bedroom is more desirable? Any advice would be appreciated.
Great question and the answer is it depends. As you noted, people pay more for the number of bedrooms. 1,100 square feet is more than enough room to have a 3 bedroom apartment, however this depends on the size of each bedroom and how the unit flows.
If you think the unit will flow after the conversion and your contractor(s) think it will flow and a third party thinks it will flow and feel right, chances are it will rent well. Something to consider is, try doing one conversion at a time and compare how the 3 bdrm unit rents vs the 2 bedrm unit.
Another thing I found when renting multi-bedroom apartments is, it's best to keep the bedrooms as similar as possible (in size and layout).
Thanks for the advice mike. Definitely some good things to think about
Don't forget the cost of building permits and building requirements.
Personally I would want the living room and would rather convert a dining room to a bedroom if that works with the layout.
I would be concerned that bedrooms without a living room would not attract families but unrelated adults who do not stay long and can be rougher clientele.
Thank you Lynette for your advice on this issue. Much appreciated