What to Do with Small Three Bedroom Units

[Kim H.]

I finally got a chance to see inside the multi-family that I am purchasing in the DFW area. What I thought were 5 one bedroom units are actually 5 three bedroom units (around 900 sq. feet each) with one fairly large bedroom downstairs and two really small bedrooms upstairs (narrow staircase and no bathroom up). I think the upstairs is pretty useless unless I can convert them into a single bedroom or a loft area for an office.

Good news is that all 9 of the units are in pretty good shape. Just need some cosmetic updating (carpet, tile, paint). All are on separate electric meters (thank goodness) and have individual laundry facilities. Water is separate though. Will need to figure that out.

What would you do with the small three bedroom units? Convert to one bedroom plus a loft (if possible) or leave as is with two small bedroom upstairs?