Add a Bed or Add a Bath?

[Sarah Miksa]

I just bought my first investment, a condo in the heart of Lincoln Park Chicago. It is a huge 1/1 with 2 private outdoor spaces near safe public transit/depaul university. I am exploring two options as a new investor. The first option is to add a full bath (around 40-45k) and then house hack the front as a short term rental and live in the back half of the unit. Alternatively, there is space to add a second bedroom. I could add another bed and then move out into a cheaper apartment and rent out as a 2/1 short term rental. The short term rentals rates are at a premium in this location and I am trying to determine the best investment option as someone new looking to renovate with the above options and rent either half or all of the unit. Thanks in advance! 

[Travis Main]

Hey Sarah,

I find the budget for a full bathroom to be high. Are you suggesting that it would cost $40-45k for both a new bathroom and bedroom?

Regarding Jonathan's point, it's crucial to evaluate the cost of these additions and calculate how long it will take to recover that investment.

I'm a bit unclear about your living arrangements. If you're currently in a 1/1 and intend to add an extra bathroom while using it for Airbnb, it seems like you'll also need to include an additional bedroom.