Rehabbing fix and flip

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How do I determine if adding square footage is worth the return? Would I juts look at comps around that size and take into account the cost of the addition with my contractor to see if it makes sense? What’s the average cost of a master suite addition?

@Marlissa Evans full disclosure, I've never completed a flip. In regards to your question, a savvy realtor (ie listing agent) is your best friend here. They should be able to tell you exactly what an additional bedroom, master bath, etc. is worth once you list the property. Take that added value at list and see what it costs for the contractor to pull that off. My guess is that the best value add/return is when you can take the existing square footage and reconfigure it (ie open floor plan, add a bedroom, master suite, etc.). Keep in mind adding square footage is more involved with permits and adds a lot of time to your holding period. However, some people make this work, it just adds a lot more complexity to the equation. Generally the more expensive a market is, the more it pays off to add square footage.