200 sqft garage converted to 4th bedroom - Good or bad for resale

[Sameer Kh]

Hello Fellow BP members,

I am looking to buy a 3 bed and 2 bath basic home from a local investor. The investor mentioned that the garage was converted to 4th bedroom and they have followed the HOA guidelines. I did some research on BP and other sites and there are conflicting views on where the garage being converted to 4th bedroom is good or bad. So I wanted to pose this question to find out if this will cause issues in getting tenants and finding buyers in future i.e. delay the process and impact sales price or rent? Should I ask the investor to convert it back to garage as a part of the deal (they are doing rehab as well).

Appreciate any guidance and help.

Thanks

Sameer 

[Roy Oliphant]

@Sameer Kh

In our experience, the 4th bedroom usually has more value than a garage as buy and hold owners. However, you mentioned an HOA. Be sure to check with them about parking restrictions. The conversion may have been approved but a family looking to rent a 4 bedroom may have teenage kids and need more than 2 cars in the driveway. If street parking is forbidden by the HOA, this could be an issue.