Adding rooms to a rental

[Lucas Carroll]

Hello BP,

     So, last year I picked up a 1,900 sf rental property which was a 2 bed 2 bath.  It had a large finished basement so I was able to section off two areas and make additional bedrooms out of them.   It is currently rented as a 4/2. This was done without pulling any permits, but the rooms *should* meet the requirements for a bedroom per 2016 ct building code.  I did the work and while I'm not a GC, nor did I have a GC work with me on this, we reviewed the code before building those rooms out.  The property, as a 2/2 appraised for about 180k, but comps in the area put it at about 240k as a 4/2.  In order for me to do a cash-out refinance, do I have to pull the permits and update the information with the town?  Do you suggest I get a GC out prior to permit/inspection to verify?  Or just run through it with the town and fix what they say needs fixing?  I'm intending on holding this property for a while, so I'm not concerned with listing for sale as a 4/2.  This would change the assessed value of the property and bump the taxes up accordingly as well.

Any thoughts or suggestions?

Thanks!