Competition for 3BR homes calls for a different strategy

[Jennifer Hubbard]

The competition for 3BR homes is stiff in our market (Chicagoland). Deals are snapped up before we can even look at the property. We are forced to make offers before viewing properties and even then we find out that the deal is already under contract.

Now we are considering buying 2BR homes and adding on a 2nd floor master suite and nursery/office or 4th bedroom.

Does this make sense to anyone out there? The 2BR homes are typically 850SF. Due to the age of the homes in our markets, we often have to gut everything anyway, thus we can take savings on the rehab of the smaller space to offset some of the cost of the addition. We would be interested in hearing your views and to learn of costs and pitfalls of this strategy if you care to share. Thanks and Happy New Year BP!