Questioning whether to add a 2nd bedroom in a rental unit

[Account Closed]

Hi BP,

I'm just starting on this REI journey. My husband has a property for his business (chiropractor). There is a 1000 sq ft space in the basement that we are making into a rental to get our feet wet. We go back and forth on whether it would be worth it to make it a 2bd instead of a 1bd. It would probably be an additional $5k for the 2nd bedroom (need egress window). I just don't know if a young family would rent under a business versus a young professional or young couple who only need 1 bedroom. Any thoughts or advice would be greatly appreciated.

[Austin Fruechting]

I would go typically go with two beds. A young professional or young couple will often prefer having the ability to have an office space or guest bedroom so that would be of value, so it's not just families that would be looking for a two bed. It's all market dependent though. Look around your area at rental rates for both. If it only costs an additional $5k, but rents for $100 more that's a 24% annual return on that.