To add, or not to add? Portland Oregon flip.

[Gene Murashko]

I have a property in the Lents neighborhood that is just getting finished up with phase 1 of the rehab. After dealing with the city I learned I had to do the remodel in two phases, first on the original structure, and only after it finals out I can add to the house.  The first phase turned out great, but for me to pass the final it needs to be 100% up to code. Once I get it to that point I can just sell it as is and make my profit, or I can add a 3rd bedroom and a living room to the house and make it a 3 bed 2 bath(1494 sq ft) instead  of a 2 bed 2 bath (1028 sq ft). The takeaway is I won't have covered parking if I do the addition.  

The house as is has a big kitchen, indoor laundry room, 2 full bathrooms one smaller bedroom and a nice master with WIC.  It does NOT have a living room.  

What do you experts think? Should I get the addition done or just sell as is? My estimate is approximately 15k for the addition using subs for everything plus an additional 5-6k in holding costs.

[Neal Collins]

Gene Murashko at $32/sq ft I think you may want to plan for overages, but living rooms and third bedrooms both provide lots of value, more so than covered parking.