How Much Does An Extra Bedroom Increase ARV in the Lexington?

How Much Does An Extra Bedroom Increase ARV in the Lexington?

Lexington, KY · Member since 2020 · 10 posts · 1 vote

I am looking into a deal for a SFH in Lexington and when calculating the ARV I see there is a potential for an additional room, which could help increase the cash flow. Current house is 2bed-1bath with 1,280 sqft. Not sure if the investment for the extra bedroom alone would make sense or if a bathroom would be more of a priority to make it 2-2 instead of 3-1.

Does anyone know what is the most desirable layout in Lexington, KY area?

Does anyone have any experience with building an extra room in Lexington? 


Any tips will be greatly appreciated. 


Thank you!

0Reply
12 views

Most Popular Reply

Financial Advisor · Lexington, KY · Member since 2012 · 150 posts · 66 votes
5y

Hi @JJ De La Llera - Not sure if this is helpful or not, but we turned an awkward 1400 sq foot 1/2 into a 3/2 and added a ton of value. Went from a purchase of price of $65,000 to an appraisal amount of $173,000. Probably put about in ~$40,000 of rehab to get there. Property is in an transitioning neighborhood in Downtown Lexington.

See this reply in the discussion

4 Replies

Jump to latestLatest
  • Developer · Danville KY · Member since 2015 · 85 posts · 110 votes
    5y

    @JJ De La Llera Depending on the layout (1200 sq ft is decent), you could do a 3-2. That would be ideal, however, I would look at comps around your property and see what they have to offer and base my decision on that.

  • Financial Advisor · Lexington, KY · Member since 2012 · 150 posts · 66 votes
    5y

    Hi @JJ De La Llera - Not sure if this is helpful or not, but we turned an awkward 1400 sq foot 1/2 into a 3/2 and added a ton of value. Went from a purchase of price of $65,000 to an appraisal amount of $173,000. Probably put about in ~$40,000 of rehab to get there. Property is in an transitioning neighborhood in Downtown Lexington.

  • Rental Property Investor · Investor from Gilbert, AZ · Member since 2018 · 37 posts · 22 votes
    5y

    @JJ De La Llera kJ, it all depends on the comps for a 2-1 to a 3-1 or a 2-2. Also depends on the area and rental market. Definitely pull comps and do your due diligence to see what would sell for the best price and quickest. I have a great go to guy that could be a good reference if needed. Just let me know.

  • Lexington, KY · Member since 2020 · 10 posts · 1 vote
    5y

    Thank you guys for the feedback @Lina Bibikov, @Jonathan Pliszka and @Christopher Leet! Very helpful and I will use the most similar comps to determine my outcome. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.