Should I add a bathroom to 3/1 property?

Question

Hi BP community! I'm a new investor looking to purchase my first rental property in Pinellas County, FL. The property is a 3 bedroom 1 bath. Weird to have only one bath. I would value thoughts from investors about whether it is worth the money to add a bathroom. Most other rentals in the area are 3/2 or 2/2. Thanks for any thoughts on this and especially appreciated are shared experiences with similar situations.

James DeRoest · Answer

Can you recoup your investment in an extra bathroom?

I wouldn't get too torn up with a missing feature like the extra bathroom. There are plenty of people who won't care. All the extra bathroom does it appeal to a wider audience, but, the extra bathroom also comes at a higher price (maybe only $50), so it then appeals to a smaller audience.

You could talk yourself in circles on this stuff.

We've never had a any problems renting 3/1s. And I've never understood why occasionally we get tire kickers who say "but we're really looking for a 3/2" - so why did you bother viewing this property? Is it suddenly going to sprout a bathroom between you seeing the advert and getting to view it? Did you not believe me when I was counting the bathrooms the other day?.....one....no two, definitely cannot find another bathroom, definitely one.

Byron Bohlsen · Answer

Depends how much its going to cost you... That said I am going to go out on a limb and say adding another bathroom will have the following benefits:

Higher property value

Easier to rent

Tenants stay longer

Better tenant quality

Adam Ulery · Answer

Thanks to all who have responded. These are great thoughts and exactly what I was looking for. I especially enjoyed @James DeRoest humor and @Nicole W. for grounding me by reminding me my focus is making money, not spending it!

Colleen F. · Answer

@Aaron Nelson   For  renting   it is  a  second bath.   For  selling there is probably some rule you need to follow.  This is one of those weird things you make clear in your ad if it matters in your area. The one thing you should not do is list it separately as a Laundry room and a bathroom because that makes it look like two rooms.

Nicole A. · Answer

And besides the cost, would the layout for adding the bath negatively affect the size of a bedroom? Or would there just be an awkward layout? 3/1 rentals are pretty common. I think you should focus on making money for your first rental rather than spending money. That is the point anyway. :-)

Max T. · Answer

Probably not necessary for a rental.

But when you're ready for the exit strategy of putting it on the market for sale, that would be the time.

Aaron Nelson · Answer

Thanks for posting this thread. Lots of good information. I'm a real estate investing newbie and have a follow up question:

How would you list a property that has a toilet, sink and shower downstairs in the utility (laundry) room and a full bathroom upstairs? Would you advertise this as a "two-bathroom" rental? I ask because I've seen SFRs on Redfin.com in my area selling as "one bathroom" homes even though they have two toilets/sinks/showers. By listing as a one bathroom rental, any filter for >1 bathroom would cause the property to be missed even though it might be a great fit.

Colleen F. · Answer

It is about your area. We have a 4/1  but there is little in our price point so not too hard to rent. However if we chose to add a bath it would be expensive and not add value because of the location the bathroom would need to be. You really need to look at if this is an easy reasonable price  fix or if it is difficult and expensive to change.

Should I add a bathroom to 3/1 property?

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