Bedroom and a Pool?

[Bill Scott]

I'm looking at a bank owned, 2br Cape Cod for a flip. It's about 60 years old, in very good condition.....except that it looks like the set from "That 70's Show"...orange counter tops, dark cabinets, green carpet, etc. The only improvement to the home this century is a swimming pool. It looks reasonably well maintained and could probably be up and running for less than the cost of filling it in. The home is in PA so it's summer only use and the only house with an in ground pool in a middle class neighborhood. My realtor says "fill it in." I'm not so sure. Any opinions?

The other consideration here is the fact that it's a 2br, but there is an unfinished attic which could easily be converted to one or two more. My thought was to finish half the space, making a third bedroom. My partner in this venture is a contractor, so it's primarily a cost of materials. I'm estimating a few thousand dollars. It seems like a no brainer to me, but I don't want to fall into the over improvement trap on our first flip. Does adding this room make sense financially? Opinions?

Thanks, Bill Scott