Turning 3 bd into 2 bd - ARV & Rent Impact

[Kerry B.]

Contractor is suggesting we turn a 3 bdrm property into 2 bdrms with a larger bathroom and more closet space in the master bedroom. Our goal is to BRRRR and get the maximum ARV to move to the next thing. How will this impact the financials?

Our property manager (who also recommended this contractor) says it will rent for the same money and your property will be better taken care of b/c most likely the tenants you'll attract won't have kids and that the ARV will be the same, or marginally lower.

What's been your experience? Property is around 950 square feet and when our agent sent over comps, another 3 bedroom property 1/4 mile away that was 900 sq ft. had a great ARV and we are essentially going to replicate what they did there...with the exception of finishing the basement b/c that adds marginal value. Would love to hear your thoughts?