How to find "that extra room"

[Elliott Back]

I am currently reading Brandon Turners book on rental properties and he says that one of the best methods to gaining forced equity right off the bat is finding that home that has two beds and turning it into three. I wonder what the best method is for finding that extra room. Is it as simple and there being a large enough storage room? Or is more complex?

[Scott Beal]

@Elliott Back

It can be that simple if there really is a massive room or some space that feels larger than it needs to be. Ideally you wouldn't want to damage the quality of the property otherwise in adding a room. As in you don't want to ruin a good living room in a family oriented neighborhood. Does the property have a basement or an attic? Is there a kitchen that could be combined with a dining room? Keep in mind, to advertise the property with the extra room, you'll likely have to pull permits, add egress windows, etc...

At the end of the day, you just want to make sure that your return on investment is good. If you have to move a wall or two, the costs can add up. You want to make sure you have a good idea of how much the project will cost, how much value it will add to the property itself, and how much you can increase rent based on your improvements. Then you can analyze whether or not to move forward.

Some more good info here https://www.biggerpockets.com/forums/52/topics/175907-adding-an-extra-bedroom-worth-it-for-a-rental