I am about to close on a 1300sf 4/1 single family in Watson that I am rehabbing to rent. I am trying to get the ARV up as much as make sense for a rental, to refi and get back what I put in.
I believe the ARV will be around 125k after some minor repair and cosmetic work. My contractor is quoting $6,800 to add a full bath and closets in the master, changing it from a 4/1 to a 4/2. Obviously this would increase the appraisal, but I am wondering how much? Would I recoup the investment?
Also, I think I could get $1150 rent as a 4/1, but could probably get $1300 as a 4/2. Does this sound correct?
I think that the best way to see how this would affect your ARV is to look at comps in your area. It makes sense that adding a second bath to a 4 bed home will make it much more desirable to a group of renters, but I think only comparable sales and rentals can give you a quantitative estimate. Good luck with the repairs!