Full/Half Bath Addition Cost/Value

[Spencer Kraus]

A friend and I are looking at a potential property to flip that is approximately 2100 SqFt, 4 Br/1Ba, .58 acres on market for 85k. It is an older home built in 1938, but the place is in decent shape, is furnished and designed old-school but could be very easy to make look decent with some cosmetic additions/changes around the house. A few houses that are neighboring this area are on market for 200-250k that are about the same size with 1.5 or 2 bath but about 60 years newer. I was wondering if anyone has any experience adding a bathroom to a property to flip, what costs were, what the value added was, potential issues or considerations, etc. We are confident we can do this ourselves with correct guidance but we are not quite sure if it will add enough value or not. I was certain that even adding a half bath onto the backside of the house will bring up the value a ton considering at full capacity, 4 people would have to share 1 bathroom, and adding a half bath will double the showering occupancy for the most part. Any feedback or suggestions would be awesome, and I can give more detail if necessary. Thanks!

[Jason D.]

Of course all markets are different, but I took a 3/1.5 and turned it into a 3/2 with the new, full bath, part of a master suite. The Arv in that area for the house as a 3/1.5 was about $145k, and my property just appraised for $163k. It cost us about $4000 to enlarge the bath and add a shower.