3 Bed/ 1 Bath vs 2 Bed/ 2 Bath

[Satish Subramanian]

I recently purchased a 3-unit property and live in one of the units. It's currently a 2 Bed/ 1 Bath unit, but it's 1400 sq ft. and there's a TON of space that could easily be used to add another bedroom, bathroom, or potentially both. I'm in Jefferson Park, which is definitely a family-oriented neighborhood of Chicago.

My question is: If you were me, would you rather own and rent a 3 Bed/ 1 Bath or a 2 Bed/ 2 Bath? Both of these solutions would still have a solid-sized living room. Or would you go further and make it a 3 Bed/ 2 Bath, but have a small/mid-sized living room? Or is the cost of adding these rooms make it not worth the resources for either addition?