Should I add a bathroom or not to a 2 bed/1 bath house?

Question

I'm new to Bigger Pockets.  I'm buying an old 1920's 2 bedroom house with a small bathroom at the back porch area, accessible currently only from one of the bedrooms.  Should I add a second bathroom?

Here is more detail about this question:

I live in a transitional neighborhood that is on an upward trend.  I've lived here 15 years and recently people started building houses here left and right and renovating older properties.  My immediate neighbor on one side is selling their house for cheap because of relationship issues.

The ARV (after repair value) will be close to $100,000 based on comps I've found and discussion with a knowledgeable realtor.  It's selling for $25K and is in livable condition.  I have estimated around $25K to renovate.  I hope to make around 40% or more profit when we sell.  The question I have is should I add a bathroom to this 2bed/1bath house?  It was built in the 20's and they may not have had plumbing originally, as the bathroom was built onto the back porch area.  The house is about 1300 s.f.   The comparable houses in ARV price and size mostly have 2 bed/2 baths.  The realtor I'm working with thought adding a bathroom might be overkill and we would have trouble getting the money back.  What do you think?  The existing bathroom is small.  The alternative to adding a bath would be to expand the one that's there, and make it accessible without having to go through a bedroom!

I don't own it yet, but it's under contract.  I am a professional artist and will use it for a while for my art studio, but will plan the renovation for resale longterm.

Account Closed · Answer

@Matthew Lee Without seeing a floorplan, I'd add a BEDroom and move the walls so that the bathroom is accessible by all bedrooms  down a hall. Then I would do some, but not necessarily all upgrades to the bathroom. Three bedrooms sells a lot faster and for more than two bedrooms in every market I buy and sell in and bedrooms are a lot cheaper to build.

Matthew Lee · Answer

@Christopher Blanco- I agree.  The $25K would be to upgrade bathroom as is, and leave it 2 bedroom. The $25K includes this basic scope: sidewalk repair, new porch floor, painting, new cabinets in kitchen, relocate kitchen plumbing (since I'm flipping the plan), renovate bathroom, replace small back deck, finish roof shingle work (they got half way through new shingles) add new front door and 2 windows.

I completely renovated the bathroom in my house for around $6K, all new everything including flooring, plumbing, fixtures, tile, drywall, lighting.  I hired out some of it, and did the cabinetry myself.  So if I did add a bath next door it might run closer to $10K, because I will have to reroute plumbing across the house...... sound about right?

Matthew Lee · Answer

Account Closed- Thanks for your input.  I'm attaching a plan and the front view of the house.  Currently you enter from a door to one side on the porch into a vestibule, which then opens into a small living area, which passes through to a dining/kitchen combined room.  The have completely covered up the windows and original door on the front of the house at the porch area.  In looking inside the house I can see where there originally was a door on axis with the front porch stairs, and it entered a room that was 17ft. wide instead of the 13ft wide living room currently.  So I am planning on flipping the plan, or mirroring.  I think this will have a lot nicer curb appeal- see photo below.  I can't quite figure out what the vestibule was originally- it has hardwood floors, so it appears to have been there originally.  It would be fairly simple to create a third bedroom as you suggested, I could just open up the wall between the vestibule and current living space and add a wall further down in the living space.

They put a jacuzzi in the porch/hallway, it's rather strange.  It will have to go!

In flipping the plan I will have to move the kitchen plumbing over to the left, but there's already plumbing in that area, so hopefully it won't break the bank.  I will put a master bedroom where the current dining room is, and they can have a big master closet where the current pantry is.

Michaela G. · Answer

that's what I've been always told for appraisal purposes. Most shotguns i know have only one bedroom and whenever they get renovated people tend to split off a hallway so that nobody has to walk through the room and thus it can qualify as bedroom.

For a room to qualify as bedroom it has to have a closet and has to be able to be closed up.

Matthew Lee · Answer

@Michaela G. Thanks Michaela, I can see what you are saying.  It may be easier though to take out the jacuzzi and just put the door there.  who wants a jacuzzi in the hallway anyway?

I've never heard of a bedroom being disqualified because it has to be walked through.  Most shotgun houses have walkthrough bedrooms. Where does that regulation come from?

I really appreciate everyone's input.

Michaela G. · Answer

First of all, right now you have a 1 bedroom house, not a 2 bedroom. Having to walk through the 2nd bedroom to get to the bathroom disqualifies it as a bedroom.

Soooo, I'm not sure I'll be able to explain that right: To be able to enter the bathroom from the kitchen (I know you say the kitchen is smaller than the bedroom and you'd hate to take room away) you could build another doorway into the bedroom from the kitchen right next to the stove. Then carve a rectangle out of the bedroom by framing 2 walls, that would make that part a little entry way into the bath from the kitchen.

You'll have to find another space for the stove, but it'll be cheaper than flipping all of those rooms around and now you'd have 2 true bedrooms.

Matthew Lee · Answer

@Bob B. I'm not seeing much difference in the ARV for increases in bed or baths.... Maybe about $3000+ for an extra bedroom.   I can't find any similar houses in my neighborhood that are 2/1.  Here's some comps:

Comp 1- 2 bed/2 bath, $93K, built 1942.

Comp 2- 3 bed/2 bath $96K, built 1928

Comp 3- 3 bed/2 bath $97.5K, built 1938

Comp 4, in slightly better area: 2bed/1bath $106K, built 1950

I'll ask my realtor the same question....

p.s. realtor says we might get $15K more to go 3/2, but might not make it back due to renovation costs.

Matthew Lee · Answer

@Steve Racicot Good ideas.  I thought the same thing originally- I would just put a door through where the jacuzzi is now, so the bath can be accessed without going through the bedroom.  That is the most economical and simplest route to go.  But, the living space feels rather cramped right now at 13' wide, compared to the 17' wide bedroom at the front of the house.  It could be just the fact that they have the current living space jammed full of bulky furniture.  If we proceed this route, I may try to open up the space more between living and dining with french doors or similar.

That said, I don't really like entering sideways at the front porch.  It would seem more intuitive to go straight in a front door, and the 17' wide living space might feel more spacious.  Tough call.

I think there is roughly 8'-6" x 15'-0" to work with in the bath area, if I relocate a water heater back to the laundry area.  So yes, you could get 2 baths in that corner.

Bob B. · Answer

What would the ARV be if you took it to a 3/2?

Steve Racicot · Answer

@Matthew Lee Why not simply reconfigure the kitchen and enter the bathroom from the kitchen.  Get rid of the jacuzzi and that can be the entrance.

Is there enough room to actually make that whole area 2 bathrooms, both next to each other?  1 accessible from the kitchen and the other one accessible from the bedroom.   Then you would have a master suite.

Should I add a bathroom or not to a 2 bed/1 bath house?

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