Changing floor plan to maximize inome

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Changing floor plan to maximize inome

John Irvin
Member since 2020 · 16 posts · 5 votes

I'm getting ready to renovate my first BRRR property.

It’s currently laid out kind of funky. It’s 1100 sq ft. It’s a 2 bedroom 1 bath, with the bathroom only accessible through one of the bedrooms.

I think I can get a 3rd bedroom. Maybe a half bath. It will get me another $200 a month in my market.

I’m looking for advice on a floor plan layout software to play around with layout optimization.

I would also like to connect with some who can do some layout work remotely. Best case would be to find someone locally who could work with me on layout. Unfortunately I live in a pretty small town (7500 people) in central Illinois. I don’t really know who to contact. Not even sure what to expect to pay for this kind of service.

Any suggestions or advice would be greatly appreciated!

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Forrest Williams
Real Estate Agent · Chicagoland · Member since 2018 · 314 posts · 199 votes
5y

Fellow Illinois resident here, you may need an architect depending on your city code. Around the suburbs and in Chicago, that is pretty much the norm for some radical restructuring like that. It can be quite costly so be prepared. If you want to send me some layout pics, I wouldn't mind taking a look at them and helping with some ideas if you want.

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  • Forrest Williams
    Real Estate Agent · Chicagoland · Member since 2018 · 314 posts · 199 votes
    5y

    Fellow Illinois resident here, you may need an architect depending on your city code. Around the suburbs and in Chicago, that is pretty much the norm for some radical restructuring like that. It can be quite costly so be prepared. If you want to send me some layout pics, I wouldn't mind taking a look at them and helping with some ideas if you want.

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
    5y

    I've done this on several of on my own properties. I don't want to start recommending products or things here as I don't want it to appear as an endorsement, so you can feel free to send me a message if you want to discuss further. I will say that I've been able to create 3/2s from 2/1s without having to put an addition on the house. 

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  • Louis Jeffries
    Lender · Chicago, IL · Member since 2010 · 149 posts · 127 votes
    5y

    @John Irvin Please consider what the new ARV will be. By adding a bedroom and bathroom, it will not only increase the rent but more importantly increase the market value. The question is will it increase the market value enough to recoup your costs. The key behind the BRRRR method is that when you refinance you will get most if not all the cast you invested back so you can repeat the process with the same money.

    The added rooms my increase the value dramatically or not increase it enough to cover your expenses. Check with the realtor on your team to confirm the ARV and the lender on your team to confirm how much you can get as a cash out refinance based on the new ARV.

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  • John Irvin
    OP
    Member since 2020 · 16 posts · 5 votes
    5y

    @Forrest Williams

    Thanks for the reply! I’m in a pretty small town down state. So, I‘ll check on that locally. Might not be as tightly regulated here.

    I’ll try to put some stuff together and touch base with you.

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  • John Irvin
    OP
    Member since 2020 · 16 posts · 5 votes
    5y

    @Louis Jeffries

    Thanks for the reply! Great points!

    I’m planning to get some input from my local RE agents. The challenge with small markets like this is getting good comps.

    My other thought is that adding a bedroom and possibly a 1/2 bath will make this a much easier sale down the road. I’m trying to think of the exit strategy, but definitely don’t want to put money in that I can’t get back down the road. And like you said, ideally pull out as much of my cash on the refi as possible.

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  • Samuel Pavlovcik
    Architect · Chicago, IL · Member since 2020 · 214 posts · 236 votes
    5y

    Hey @John Irvin, as an Architect, I am aware of a few user-friendly software programs that are also Free (or have Free versions available) that you could use to play around with your space. A lot of these programs have good online tutorials to help you understand how to use the various tools as well.

    Feel free to connect, I'd be happy to share some more input from an Architectural standpoint. Sometimes the smallest change in design can make a vastly significant difference in the price for the remodel; i.e. moving a load bearing wall Vs. a non-load bearing, or not realizing until you open up a wall that there is a main plumbing stack that now needs to get relocated! There are definitely ways to plan ahead to avoid many future expenses and headaches; however, in the work of remodeling, nothing is ever perfect...

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