Should I keep the dining room or make a fourth bedroom?

Question

Happy Monday my BP friends! I am in the middle of rehabbing my first property in Rochester, NY.  It is a SFR listed as a 3 bed 1.5 bath. There is a small stand up corner shower in the .5 bath so I really have 3 bed 2 bath as it sits. There is a dining room right now that I am considering turning in to a 4th bedroom and going without a dining room all together due to the larger kitchen and new layout I am doing. Not sure if I will see enough ROI as I am having trouble finding much of a difference in the rents between a 3BR and a 4BR. Any thoughts would be greatly appreciated.

Nathan Gesner · Answer

Unless you have evidence of demand and the ability to charge more, leave it a dining room. Someone could always flex and use it as a bedroom or a den or a playroom.

Bathrooms are measured with four fixtures: toilet, sink, shower, tub. If you have a toilet, sink, and shower then it's a 3/4 bath and it's safe to say (3bed/2bath).

Shane W. Chapin · Answer

@Craig Stull thanks for the feedback! Nice to know you have seen the return on the 4th bedroom here in Rochester. My kitchen design allows for a nice dining space and I can even put a 3 seat island as well so we are converting the DR.

Craig S. · Answer

I don't think you can go wrong adding a bedroom. I've done this 3 times and have always gotten a great return on my investment!  So much so, I'm converting a dining room to a bedroom right now.

Matt Nusbaum · Answer

Hi @Shane W. Chapin - I agree with @Tahra Wright. Unless there is a big difference in rent between 3 and 4 bedroom then I would keep the dining room. You'll be able to exit easier down the line.

Chris Szepessy · Answer

I saw an article a couple years about how dining rooms were becoming obsolete since families have become so busy that they rarely sit down and have dinner together. To me, it depends on how big the kitchen is and if you can actually put a table in there to have a sit down meal if you wanted.

I don't think this is the exact article, but sorta similar.

https://www.huffingtonpost.com/2015/01/16/dining-rooms-becoming-extinct_n_6418526.html

Tahra Wright · Answer

If you are only seeing a negligible difference between 3 and 4 bed rents, then you might as well keep the DR and a 3 bed.  There may not be that much demand for a 4 bed rental in your area, which is why the price differential is so low.   Plus, for someone to want a 4 bed rental usually means they have at least 4, if not more, ppl in the family, where would they be able to sit and have a nice meal?  Unless the kitchen is large enough for a proper EIK (not just an island with island seating) then I'd keep the DR and the 3bed.

Jamie Rose · Answer

If you're converting to a rental to keep - then I'd go 4br all day. If you're looking to flip it out and sell - then get the comps. Best of luck!

Charles Gr. · Answer

I would actually rent out the four bedrooms individually. You’ll have a much higher income each month. If you screen your tenants properly, you will be set for a good long time.

I like to buy townhouses with 3 beds and a basement- I convert the dining to a 4th bedroom, and rent out the basement on its own. Where I live, that gives me $600 x4, + $850, = $3250 rent on a $1450 mortgage/HOA/insurance cost! That’s $1800 cash flow profit a month.

Max T. · Answer

extra bedroom means more likely to attract bigger families with kids

Johann Jells · Answer

Count me no, I'd rather have a smaller family that values quality of life.  I have a railroad that some would advertise  4br.  I call it 2br, I don't want a huge family that makes life miserable for the other tenants. Been there, plus that big family is more typically struggling economically.

Should I keep the dining room or make a fourth bedroom?

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