Purchasing a home with unpermitted bedroom

[Mike Musarra]

I'm considering making an offer on a property that is listed as a 2 bedroom 1.5 bath as a long term buy and hold property to add to my portfolio.  The house is priced as if it's a 2B, 1.5BATH but at some point someone has added a "bedroom" in the attic.  HVAC, electrical, drywall, two points of egress, the whole 9. (technically no closet but for a few hundred dollars I can solve that problem.)  I went to the auditor site and the property is considered a true 2 bedroom and no permits were ever pulled best I can tell when they added the third "bedroom".  The additional bedroom adds to both the rental value, and significantly to the appraisal value, obviously.

Given it's priced as if it's a 2 bedroom and not a 3, it seems like a great deal.  But how big of a risk should I view this as?  It appears to have been there quite some time without issues.  Is the juice worth the squeeze?

These sorts of questions are inherently subjective to the risk profile of the investor - but I'd like to hear some other perspectives on it.

Thanks to anyone willing to share their insight.

Mike