Cabin expansion: Can you guys give me your thoughts?

[Collin Hays]

Hey guys!  Can I get your thoughts on whether I should expand my cabin near Gatlinburg?  It is currently 1100 square feet on the first floor, 1100 square feet finished basement, and 300 square feet sleeping loft.  It is a beautiful tract in the Smokies, on 2 acres, and 300 feet of Cosby Creek, a nice trout stream.  I've had it since 2005 and we have many memories there.  It current fetches about $55K a year in rents.  I've never marketed it to groups larger than 8, so I don't get as much rent as I could.  But our familiy has grown!

I am considering a 20 foot extension to my cabin - a new master suite with bathroom and fireplace, that would take me to around 2900 feet.  It would sleep 10 instead of 8.  Perfect and comfortable for two families, children, and maybe gramps and gramma!  

If it would fetch another $10-15K a year in rents, what would it be worth paying to do the addition?  $100K?  $150K?  I wouldn't have to borrow the money.  I talked to a good builder yesterday and he's hungry for work - not much going on right now in the Smokies.

Thanks everyone for your input on this decision!