Advice Needed on Remodel

[Shawn Parsh]

I would love to get your input on a new property I am supposed to close on in a couple weeks. It is currently a 3 Bed/1Bath house that is only 860 sq feet. The house is cosmetically distressed and we will be doing a complete remodel. It is located in Mountain City, TN  where it is currently next to impossible to find a place to rent. My intent right now, (it may change), is to fix and flip this property. My question is would I be better to eliminate one of the bedrooms and make it a 2 Bed/ 2 or 2 1/2 Bath house? I would also be able to add some closet space if I eliminate one of the bedrooms. Your input will be greatly appreciated.