Best way to convert 2BR to 3BR in regards to BRRRR

[Marek Narewski]

Hi Everyone,

This is my first forum post, so be easy on me, I'm a rookie.  

I closed on my first duplex last week in Connecticut, 2BR/1BA in each unit.  I have the option to convert one of the units into a 3BR and plan on doing so, but I am looking for some advice.  

The optional 3rd bedroom is off of a 16'x14' living room.  The optional bedroom is 15'x12' and currently has two entrances.  One entrance being a normal 30" doorway from one side of the room and the other being a 60" doorway (no doors) that is off of the living room.  

Should I put in solid french doors to give tenants the option to have a 3BR (close the french doors) or open den off of the living room?  Or should I knock down the whole wall and put fresh drywall up? (DIY) (Would knock it down it is wood paneling.) 

I am stuck here because french doors would obviously be the simple option that would be less time consuming and possibly even cost less, but is this less desirable for tenants?  Also, I am on a time crunch and would like to finish renovating within the next 3 weeks, but drywall would prolong that.

That brings me to the main question about BRRRR. Is the time and money of replacing the wood paneling with drywall and officially converting the unit into 3BR worth it when refinancing? Will it raise my equity much higher? Would only putting solid french doors in technically convert it to a 3BR?

Hoping this post wasn't too confusing. Let me know if you have any questions.

Thanks in advance,

Marek

[Aaron K.]

You need a closet and a window to make it a legal bedroom, so start with that, also taking down paneling I've found to be totally worth it, it won't be too expensive either because you don't need to take down the entire wall just take off the paneling.  You could probably complete this for $3,000-$5,000 and you'd likely get much more in rent and much more value.