Does adding a bedroom increase the value of a home?

[Candace O.]

I have a 3 bedroom home that I am doing a live-in flip.  It has a bonus room that would be pretty easy to add a wall and door to make a 4th bedroom or office.  I am wondering if this is usually worth the cost to add a bedroom.  Would appreciate any advice or opinions.

[Mark Trebor]

Where I rent adding a bedroom increases the rental income about $450 a month, which adds about another ~40K in value to the house.  Tossing up a wall and a door if you're doing it yourself should be less then $1K so I say go for it.  If you're looking to sell it as a single family home when you are done you might want to think about what you're doing to the floor plan by adding the bedroom.  If it's just going to be a rental then I would not be as concerned with that.

[Kelly DeWinter]

Yes

[Karl B.]

Yes. But rehabs cost money. To see if the expense of a rehab is worth doing look at sold listings near the property and compare bedrooms and comps of three bedrooms VS four bedrooms.