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!