Open Floor Concept or Add Another Bathroom?

[Wendy H.]

Hi BP, I just had an offer accepted on my very first house hack in Bay Area, CA. This is a 5 bed 3 bath older SFR. We're starting to think about how we will update/add value to the house, and as part of the consideration, we're deciding between adding a fourth bathroom to part of the living area (better cash flow), or opening up the walls between the kitchen and living areas to create an open floor concept (forced appreciation). We still need to get a quote from the GC about how each would cost, and we will try to do as much of the work ourselves as possible.

Adding the fourth bathroom would lead to better cash flow, but we believe the open floor concept will add more value in terms of equity and forced appreciation. How would you go about making this decision? Anything we should consider? Thank you in advance!

[Account Closed]

I’m from Ohio, so I don’t have any idea what is the standard layout in your area.  Please clarify if the existing three baths are all full baths, and if your proposed fourth would also be a full.  You mentioned that you wanted to add it to the living area; does that mean it will be in an odd place relative to the bedrooms?  I wouldn’t want to have to walk through a living area to take a shower.  Also, how big is the house and how much space would the new bath take up relative to the house size?  And are five bedrooms common in your area?

You also mentioned trying to do most of the work yourselves.  That will be very difficult to do if you aren’t a plumber and you end up adding the bathroom.  And please make sure you don’t remove a load bearing wall improperly if you decide to go the open concept route.