Should I enclose Courtyard to add 1000 sq ft?

Question

I am doing a rehab and wondering if the juice is worth the squeeze to enclose a Courtyard in the middle of the property and end up adding about 1000 sq ft in the process.  Currently the property is a 5 Bd - 2 bath and about 2900 sq ft.  If I add enclose the Courtyard (see pic) then it would be almost 4,000 sq ft. The general contractor that I am currently working with quoted me in the neighborhood of $40k which seems very high but I wanted to get some feedback.  What do you guys think?

Greg Dickerson · Answer

It all depends on how much that will increase the sale price and if it creates a usable, functional space. Check comps for similar square footage and run the numbers.

Account Closed · Answer

What about an ADU? it seems permitted in your county

https://planning.saccounty.net/Pages/Accessory-Dwelling-Units.aspx

Travis Gibson · Answer

I was thinking about creating a great room in the center and using some of the space to expand the kitchen and maybe add another bathroom. As you can see the potential to overbuild is definitely there.

Mike Giallanza · Answer

If there aren't any 4,000 sq ft ranches within a mile or so of this home that can act as comparables, then this may be an example of over-improving a home. It sounds like at 2,900 sqft you may already have one of the larger homes. Having said that, what would the new space add? A big great room off the kitchen? If there's one thing that may be needed, it's another bathroom since this massive 5-bed home only has 2.

Travis Gibson · Answer

@Will Barnard Most homes in this area are either two story if there are above 2800 sq ft or single story ranch around 2500 sq ft.  Included in this remodel is: remodeling the kitchen(granite, cabinets, fixtures, hardware, stainless and tile) both bathrooms(vanities, toilets, fixtures, lighting, tile), paint, skim coat drywall(where needed), vinyl plank flooring(new baseboards), replace some interiors doors and about $10-15k in landscaping and fencing. I am estimating around $70-75k for the rehab.

Which is why I am hesitant to drop $40k more unless I am sure the return on investment makes sense.

Will Barnard · Answer

You think $40 per SF is expensive to add 1000 SF in CA? I think that is a great price and a potential great value add. That said, you did not provide enough details for anyone here to properly advise you.

What you need to do is check your market comps and see what the home with the extra SF would bring you and make sure you don’t have the very largest home in the neighborhood. You never want to over build for the area. Compare that to what the existing SF would bring you. If you make a worthwhile cash on cash return for the additional SF, then go for it.

From the one and only photo, it looks like an easy add on.

Pat L. · Answer

Reminds me of a home we had in Australia where the inside had an in-ground pool but open to the elements, it was gorgeous & all the bedrooms opened to it. But $40k is tough to justify plus you need to finish the interior $$$.

Should I enclose Courtyard to add 1000 sq ft?

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